Forexlive Americas FX news wrap: Dollar falls. Stocks rise and gold goes down. – ForexLive
Forex news for North American trading on September 28, 2020
The markets today followed a more traditional pattern:
- Stocks were up in Europe and the US.
- That led to flows into the currencies and out of the USD
- The dollar was lower so gold and precious metals moved higher
- Crude oil was also higher.
Looking at each piece separately, the US stocks enjoyed the 3rd day higher in a row for the broader S&P and Nasdaq. The Nasdaq closed with a gain of over 200 points or 1.87%, but it was the small cap Russell 2000 which outperformed with a 2.4% gain. That index is the hardest hit this year in the US at -9.48%. So there is some room to roam IF the market believes in a stronger recovery from Covid. The European markets are also laggards in 2020 and they also enjoyed oversized gains today. The German Dax led the way with a 3.22% gain, but France’s Cac, Spain’s Ibex, Italy’s FTSE MIB and Portugals PSI20 all rose 2.33% or more. Big day in European and US stocks.
In the forex, the GBP is ending the day as the strongest while the USD is the weakest. Admittedly, the GBP in the NY session gave up some of the gains seen in the London morning session today. Those gains were spurred early on by optimism over the Brexit talks that got underway today. However, when chatter came from the meeting was not as encouraging as the market hoped, some of the gains on the day were eroded in the NY session. For the USD, most of it’s selling were in pre-US trading. Nevertheless, the losses were maintained with most coming vs. the GBP (-0.67%), AUD (-0.58%), CHF (-0.40% and EUR (-0.28%). The JPY, CAD, and NZD’s declines vs the greenback were more modest.
With the US down, the precious metals saw corrective moves higher in trading today. Gold ended the day up around $20 on the day or 1.07% The spot contract closed near $1881.48. Spot silver was also higher on the day as well. Both gold and silver has come under pressure of late partly in reaction to the higher dollar. Not today though.
Crude oil prices also increased today and closes the day at $40.57 up around %0.32 or 0.8% on the day.
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