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Forex Today: Hard-Brexit fears pound the Pound, Dollar bid on US-Sino woes - FXStreet

Here is what you need to know on Tuesday, September 8:

The US dollar held onto the recent upside, as investors remained bearish on the euro amid dovish ECB expectations while no-deal Brexit fears battered the British currency.  Meanwhile, rising US election risks and US-China tensions underpinned the haven demand for the greenback.

The New York Times reported that the US is considering banning some or all products made with cotton from China’s Xinjiang province. On Monday, US mulled imposing controls on China’s state-owned firm, escalating the Sino-American tech war.

The Asian equities were a mixed bag, ditching the higher close on the European indices. The main laggard remained the Chinese stocks amid renewed US-Sino tensions. Japan’s Nikkei 225 index gained despite an annualized 28.1% GDP contraction in the April-June quarter.    

Brexit: GBP/USD hit fresh two-week lows just above 1.3100, as the sell-off extended on growing Hard-Brexit fears. All eyes remain on the eighth round of Brexit negotiations, starting later on Tuesday.  

No-deal Brexit fears intensified following the revelation that the UK is planning legislation that would override critical parts of the withdrawal agreement. The European Union (EU) warned UK of a no-trade deal if it tried to alter the divorce deal.  Also, UK Prime Minister (PM) Boris Johnson announcing October 15 as the deadline to reach the deal weighed heavily on the pound.

EUR/USD battled 1.1800, as the common-currency remained on the offers amid expectations of verbal intervention by the ECB on Thursday. In the meantime, the traders will look forward to the German Trade Balance, Eurozone GDP and Employment data.

USD/JPY was side-lined around 106.00 amid falling Treasury yields and Japan’s economic contraction. AUD/USD also traded in a familiar range around 0.7275, shrugging-off mixed Australian NAB Survey and US-China tussle.

USD/CAD extended the recovery beyond 1.3100, as WTI tumbled nearly 2%. The US oil consolidated near two-month lows below $39 amid slowing Chinese oil imports and Saudi’s deepest monthly price cuts in five months for Asia.

Gold traded on the back foot around $1930, with strong bearish momentum indicated by the technical chart.

Cryptocurrencies’ downward trend continued, with Bitcoin holding above the $10,200 mark.

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https://www.fxstreet.com/news/forex-today-hard-brexit-fears-pound-the-pound-dollar-bid-on-us-sino-woes-202009080536

2020-09-08 05:36:00Z
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