forex news

Forex news: Critical week for markets kicks off quietly

The dollar is struggling to find demand at the beginning of the week in a mixed market environment, but trading behavior is overall as investors are waiting for the start of a big impact macroeconomic data and event this week. It remains relatively restrained. The IFO Enterprise Climate Index and Germany’s Expected Index will appear in European economic records on Monday prior to the Chicago Federal Activity Index and the Dallas Federal Manufacturing Survey.

Risk Assessment: China’s SSE Composite Index rose 0.45%, while the Nikkei 225 Index fell 0.65%. US stock index futures are trading unchanged, and major European stock indexes are on track to open near Friday’s closing price. Meanwhile, 10-year Treasury yields, which fell 4% on Friday, have maintained a modest daily rise of nearly 1.65%. In an interview with CNN on Sunday, US House Speaker Nancy Pelosi said Democrats had almost reached an agreement on a reduced version of the US bill on Joe Biden. Pelosi added that he would like to vote for him later in the week.

The EUR / USD pair fluctuated to the upper half of the trading range in the last few weeks in the mid-1.1600, supported by a slight weakness in the USD. This pair may require a basic catalyst to get out of this range.

Friday’s gold rose to over $ 1,800, but wiped out most of its profits before it just exceeded $ 1,790. XAU / USD is currently approaching $ 1,800 and could gain strong momentum as US Treasury yields begin to decline.

The EU and UK will negotiate post-Brexit trade rules in Northern Ireland in London on Tuesday. The role of the European Court of Justice in the enforcement and enforcement of these rules remains the greatest obstacle. GBP / USD, which had fallen slightly in the last two days of last week, has now risen to 1.3800.

The USD / JPY has a four-week recovery period and appears to be in the integration phase by mid-113.00 on Monday. According to Japanese data, the major economic index fell from 104.1 in July to 101.3 in August, which was largely ignored by market participants.

Cryptocurrency: After a record high on Wednesday, Bitcoin extended the correction over the weekend and temporarily fell below $ 60,000 before regaining its traction. Today, BTC is up almost 2% daily to $ 62,000. Ethereum is still fluctuating above $ 4,000.

Credit: FXSTREET

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