EUR/USD breaks below parity, extending its losses after hitting on Wednesday a weekly high at 1.0079, but better-than-expected US S&P Global and ISM Manufacturing PMI further cement the case for a Fed’s jumbo 75 bps rate hike in the September meeting.
The EUR/USD opened near the highs of the day at 1.0050s but dived below the parity on the release of upbeat US economic data, which put recession fears in the backseat. Therefore, the EUR/USD trades around the day’s lows at 0.9910s, below its opening price.
EUR/USD plunges on goodish US economic data
Risk aversion keeps global equities tumbling. The US ISM Manufacturing report for August came aligned with July’s figure at 52.8, topping the street’s estimates of 51.9- Even though the data was positive, it’s the second lowest reading since June 2020. The Price Index sub-component edged 7.5 percentage points lower, to 52.5 from 60, portraying the effect of the Federal Reserve tightening policy.
What to watch
The EU’s economic docket will feature the German Trade Balance alongside the common bloc Producer Price Index (PPI). On the US front, the US Nonfarm Payrolls report for August, alongside Unemployment Rate, will shed some light on the direction of the EUR/USD..
EUR/USD steadies near 0.9950 as dollar rally loses steam
EUR/USD has staged a rebound and climbed to the 0.9950 area after having declined toward 0.9900. The US Dollar Index, which touched a fresh multi-decade high near 110.00, erased a portion of its daily gains but the pair remains on track to post large daily losses.
EUR/USD News
GBP/USD rebounds from multi-year lows, trades near 1.1550
GBP/USD rebounds from multi-year lows, trades near 1.1550
After having slumped to its weakest level in over two years at 1.1500, GBP/USD recovered to 1.1550 but looks to close the fifth straight day in negative territory. The risk-averse market environment and the upbeat US data helps the dollar continue to outperform its rivals.
GBP/USD News
Gold edges higher toward $1,700 following earlier selloff
Gold edges higher toward $1,700 following earlier selloff
Gold found support below $1,690 and rose toward $1,700 during the American trading hours on Thursday. With the benchmark 10-year US Treasury bond yield clinging to strong daily gains, however, XAU/USD struggles to gather recovery momentum and stays deep in negative territory.
Gold News
Bitcoin price reveals spread-eagle between stakeholders
Bitcoin price reveals spread-eagle between stakeholders
Bitcoin pulls back to support as traders prepare for Friday’s US job’s report. BTC ends up being divided into two opposing camps. Expect to see a possible drop further below $20K as bulls are the ones more likely to get washed out.
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