Author: Don Obrien

Overbought dollar giving signs of exhaustion

What you need to know on Friday, October 1:

Risk aversion once again dominated financial markets, although the American currency was not the only beneficiary. Gold prices were firmly up, while safe-haven currencies received attention during the last trading session of the month.

The greenback has reached overbought conditions against most major rivals, with higher chances of a corrective decline.

US Q2 Gross Domestic Product was upwardly revised to 6.7% QoQ, slightly better than anticipated. However,employment-related data keeps disappointing ahead of the Nonfarm Payrolls report to be out next week. US Federal Reserve chief Jerome Powell said that one good employment report could convince him they have reached the employment threshold needed to reduce financial support.

The EUR/USD pair fell to a fresh 2021 low of 1.1562 while GBP/USD bottomed at 1.3516. USD/JPY changed course during US trading hours and settled at 111.34. Commodity-linked currencies recovered nicely, although, in the wider perspective, the advances seem corrective.

Spot gold added roughly $40.00 per troy ounce, ending the day around $1,756.00. Crude oil prices dipped intraday, but ended up with modest gains, with WTI settling at $75.20 a barrel.

Wall Street plummeted at the beginning of the session but stabilized in the red after a modest bounce from intraday lows. Government bond yields retained monthly gains and settled at the upper end of their monthly range.

Safemoon could be poised for a return to $0.0000016

Like this article? Help us with some feedback by answering this survey:

Source link


Share on facebook
Share on twitter
Share on pinterest
Oliver Bolt

Oliver Bolt

On Key

Related Posts

Why 9/11 lives with all of us

Today is the 20th anniversary of 9/11. Every American over the age of 3 remembers where they were that day.