Market News
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United States Dollar Index extends recovery from two-month low; trades above 99.50
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, builds on the overnight goodish rebound from the 99.30 area, or the lowest level since June 5, and gains some follow-through traction on Tuesday.
GBP/JPY Price Forecast: Pound steadies below the 216.35 resistance area
The British Pound (GBP) edges higher against the Japanese Yen (JPY) on Tuesday and extends gains for the third consecutive day, despite the mixed UK employment figures seen earlier on the day.
Australian Dollar: Upside risk targets 0.7150 against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that AUD/USD strength remains intact after a jump to 0.7129, though overbought conditions should confine intraday moves to a 0.7090–0.7130 band.
British Pound: Softer as jobs data cools hikes – ING
ING’s Chris Turner reports a firmer EUR/GBP after UK labour data, with economist James Smith highlighting a cool jobs market and minimal wage pressures, implying little impetus for Bank of England hikes this year.
Japanese Yen hits drift closer to the key 160.00 level as risk appetite fades
The Japanese Yen (JPY) accelerates its decline as the US Dollar (USD) draws support from a sourer market mood, with investors wary of a re-escalation of tensions in the Middle East.
US Dollar: Carry-supported but rangebound near term – OCBC
OCBC’s Sim Moh Siong and Christopher Wong highlight that still-attractive US Dollar (USD) carry and softer United States (US) data, which have reduced the odds of a September Fed hike, should keep the Dollar rangebound.
Silver Price Forecast: XAG/USD remains sideways around $65, FOMC takes centre stage
Silver price (XAG/USD) continues to trade in a limited range at around $65.30 during the European trading session on Tuesday.
USD/CAD Price Forecast: Consolidates below 1.3900 as bears await 200-SMA breakdown
The USD/CAD pair struggles to capitalize on the overnight bounce from its lowest level since June 3, around the 1.3845 zone, also representing the 200-day Simple Moving Average (SMA) support, and oscillates in a narrow band on Tuesday.
Forex Today: Mood sours as Middle East tensions come back under spotlight
Here is what you need to know on Tuesday, August 18:
Equities: Stagflation fears weigh on US stocks – Deutsche Bank
Deutsche Bank strategists note that rising oil prices are reinforcing stagflation concerns and weighing on equities globally.
Euro holds gains against British Pound as UK unemployment disappoints
The EUR/GBP cross posts modest gains near 0.8550 during the early European trading hours on Tuesday. The British Pound (GBP) attracts some sellers against the Euro (EUR) following the UK employment data. Traders brace for the ZEW Survey from Germany and the Eurozone later on Tuesday.
British Pound dips to fresh lows near 1.3520 after mixed UK employment data
The British Pound (GBP) extends its reversal against the US Dollar (USD) on Tuesday as June’s UK unemployment data fails to convince investors in an already risk-off market, as tensions in the Middle East rise.
Indian Rupee: RBI inflow strategy recalibrated – Commerzbank
Commerzbank analysts describe how the Reserve Bank of India’s (RBI) early closure of the FCNR(B) swap window follows strong FX inflows and rising liquidity costs.