Forex Today: Risk-on weighs on the greenback – FXStreet
What you need to know on Monday, August 30:
The American dollar was sharply down on Friday, following words from US Federal Reserve Chair Jerome Powell. Speaking within the Jackson Hole Symposium, Powell said back in July, policymakers believed that it could be appropriate to start tapering this year, noting progress in employment but also adding the worrisome spread of the Delta variant. “We will be carefully assessing incoming data and the evolving risks,” he said. Quite a dovish comment that sent stocks up and the dollar down.
The Swiss Franc was the best performer against the greenback, while the Japanese Yen was the worst. EUR/USD flirted with 1.1800, holding nearby, while GBP/USD was rejected from around 1.3800. Commodity-linked currencies advanced, with AUD/USD currently trading around 0.7300 and USD/CAD standing at around 1.2610.
Spot gold soared to $1,819.26 a troy ounce, its highest in three weeks, ending the week around 1,817. Crude oil prices saw a modest advance, with WTI settling at $68.60 a barrel.
Wall Street rallied, with the S&P500 and the Nasdaq Composite posting record closes amid speculation the US Federal Reserve will maintain financial support, despite hawkish comments from multiple Fed officials.
US Treasury yields retreated from weekly highs but settled at the upper end of their range. The yield on the 10-year Treasury note stands at 1.31%.
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