Forex Today: Gold stabilizes after sudden slide, dollar pauses in the NFP’s aftermath, stimulus news eyed - FXStreet

Here is what you need to know on Monday, August 9:

The market mood remains tepid amid a sell-off in commodities and Chinese economic growth concerns, despite the uptick in the country’s inflation. Asian stocks erased early losses and now stabilizes, as both gold and oil prices attempt a rebound.

Gold price tumbled to the lowest since March to $1688 before staging a swift rebound towards $1750. The dust settles over Friday’s NFP blowout, as the US dollar takes a breather after reaching fresh two-week highs near 92.90 vs. its main competitors.

Stronger jobs report lifted the US Treasury yields, as it bolstered expectations of an earlier Fed’s monetary policy normalization. However, investors continue assessing the Fed’s hawkish expectations amid the continued surge in covid cases globally.

Meanwhile, markets also drew support from the US stimulus optimism. The US Senate came closer to passing a $1 trillion infrastructure bill, though it still has to go through the House.

The G10 currencies are on a recovery mode, as the US dollar stalls its bullish momentum (for now). The kiwi is the strongest while the pound appears to be the main laggard.

GBP/USD fails to benefit from the dollar’s pullback, as it struggles to extend its bounce from weekly lows. The UK political concerns are back on the table, with PM Boris Johnson reportedly threatening to demote Rishi Sunak earlier this week in a fiery Downing Street meeting. Looming Brexit concerns also continue to weigh on the pound.

EUR/USD is holding steady above 1.1750, undermined by rising Treasury yields, as the focus shifts towards the Eurozone Sentix Investors Confidence data. AUD/USD bounces back above 0.7350 amid upbeat Chinese CPI and PPI figures, shrugging off the Australian covid concerns.

Crypto bulls are taking a breather after a broad rally witnessed over the weekend. Bitcoin is trading just under $44,000 while Ethereum flirts with the $3000 mark.

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https://www.fxstreet.com/news/forex-today-gold-stabilizes-after-sudden-slide-dollar-pauses-in-the-nfps-aftermath-stimulus-news-eyed-202108090616

2021-08-09 06:00:00Z
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