Forex Today: Dollar smashed once again – FXStreet

Here is what you need to know on Thursday, July 24:

 The American dollar suffered from another sell-off, reaching fresh multi-month highs against the EUR and commodity-linked currencies. The EUR/USD pair reached the 1.1620 price zone, its highest since 2018. The greenback was pressured by mounting tensions between the US and China, and the continued increase in US coronavirus cases, with the health system, particularly in the Southern states, at the border of collapse.

The GBP/USD pair was unable to extend its gains, ending the third consecutive day little changed in the 1.2740 region, as the Pound took a hit from Brexit.  EU’s Chief negotiator Barnier said that they are still far away in negotiations with the UK after the fifth round of talks. He added that there had been no progress on the level playing field, neither on fisheries, two key issues.

Commodity-linked currencies gave up intraday gains, despite the lack of dollar’s demand, weighed by the poor performance of Wall Street, as the three main indexes closed in the red.

The USD/JPY pair once again approached the base of its latest range, heading into Friday trading a handful of pips above the 106.60 support level.

The Federal Reserve Board on Thursday broadened the set of firms eligible to transact with and provide services in three emergency lending facilities. Encouraging a broader range of agents for the Term Asset-Backed Securities Loan Facility (TALF) and counterparties for the Commercial Paper Funding Facility (CPFF) and Secondary Market Corporate Credit Facility (SMCCF) will increase the Federal Reserve’s operational capacity and insight into the respective markets.” A press release from the Fed.   

The yield on the benchmark 10-year US Treasury note traded as low as  0.581%, while the yield on the 10-year US Treasury-Inflation Protected Securities fell to a record low of -0.907%.

Wall Street plunged, with the three major indexes closing in the red. The correlation with the dollar broke, although the market may react with a delay and return to the dollar on Friday ahead of the weekend.

Crude oil prices edged lower in a risk-averse environment, but gold prices surged to fresh multi-year highs. Spot gold hit $1,898.37 a troy ounce, finishing the day around 1,887.  

Focus this Friday will be on the preliminary PMIs estimates for most major economies.

Cryptocurrency Market News: Ethereum continues outperforming the market hitting $280

Let’s block ads! (Why?)

Scalping Strategy Course (DVD + Online) - $299.00

In the much anticipated Forex Scalping Strategy Course, Vic and Sarid show you short-term focused techniques and strategies to make quicker profits while reducing market exposure.

Forexmentor Coach's Corner First Month (Online) - $149.00

The Coach's Corner offers 2 live sessions per week, an integrated approach to trading, FREE access to the VicTrade video course and Darko's Pattern Trading Video Lessons.

Source link

Have your say