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GBP/USD collapses to fresh six-week lows reached at 1.1791.

The GBP/USD plunges in the North American session due to sentiment turning sour as traders reassess their reading of recent Fed hawkish commentary. Reflecting the previously mentioned, US bond Treasury yields are rising, the greenback is on its path to closing at a six-week high, and global equities are tumbling.

The GBP/USD is trading at 1.1812, after hitting a daily high at 1.1935 before plummeting towards the daily lows at 1.1791, though it remains trading below its opening price.

As previously mentioned, the British pound extends its losses, while the US Dollar Index, a gauge of the buck’s value vs. its counterparts, rallies 0.67%, up at 108.211. At the same time, the US 10-year bond yield climbs ten bps to 2.994%.

The lack of US economic data released on Friday keeps market players digesting Fed commentary. July’s FOMC monetary policy minutes were initially misread by traders, which sent US equities rallying sharply, even though Fed officials reiterated on several occasions that “inflation is too high” and that it’s premature to declare “victory.”

EUR/USD falls to fresh monthly low below 1.0050

EUR/USD has extended its daily slide during the American trading hours and touched its lowest level in a month below 1.0050. In the absence of macroeconomic data releases, the dollar capitalizes on safe-haven flows and continues to outperform its major rivals.

EUR/USD News 

GBP/USD tests 1.1800 as dollar rally continues

Following a short-lasting recovery attempt, GBP/USD turned south and fell to the 1.1800 area. Reflecting the unabated dollar strength amid risk aversion, the US Dollar Index advanced to its strongest level in a month above 108.00 in the American session.

GBP/USD News 

Gold stays on the back foot, trades near $1,750

Gold continued to push higher in the second half of the day and touched its lowest level since late July below $1,750. The benchmark 10-year US Treasury bond yield is up more than 3% on a daily basis, not allowing XAU/USD to stage a rebound.