Home Forex News Dollar Clings On, Yen Creeps Higher As Fed Speakers In Focus.

Dollar Clings On, Yen Creeps Higher As Fed Speakers In Focus.

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The dollar clung to late-week gains on Monday, while the yen and yuan each edged higher, as investors looked ahead to a slew of U.S. Federal Reserve speakers this week and to a decision on the inclusion of Chinese government bonds in a global index.

European countries from Denmark to Greece announced new restrictions last week to curb surging infections, while Britain was reported to be considering a new national lockdown. The euro inched higher to $1.1847 and the pound moved up to $1.2933, though trepidation about rising corona virus cases in Europe and Brexit turmoil kept a lid on gains.

Fed Chairman Jerome Powell is due to appear before Congressional committees later this week while Fed committee members Charles Evans, Raphael Bostic, Lael Brainard, James Bullard, Mary Daly and John Williams also make public speeches. Their opinions on how the Fed should handle its more accommodative approach to inflation could drive further yen strength if they imply looser monetary policy settings.

US Market extends decline on rising tension with China

The US stocks declined for third straight session on Friday, 18 September 2020, with the major averages finished firmly into negative territory, on rising tensions between the world’s two largest economies after Trump administration announcement to ban Chinese-owned apps TikTok and WeChat from US app stores starting late on Sunday.

The weakness on Wall Street came as the US Commerce Department announcement on Friday the Chinese-owned messaging app WeChat and video-sharing app TikTok will not be available for download in the US starting late on Sunday. Those who have TikTok downloaded will not receive updates. The wildly popular video-sharing app could be banned in the US if no deal is struck by November 12 between TikTok’s owner ByteDance and Oracle Corp to create the new company, TikTok Global.

Meanwhile, selloff also fuelled amid renewed concerns about the economic outlook following the Federal Reserve’s monetary policy announcement on Wednesday. While the Fed indicated it plans to leave interest rates at near-zero levels for years to come, traders seem skeptical that will be enough to support the economy.

TREND : WEAK BULLISH / SIDEWAYS

Time                                      :           21/09/2020

Pivot                                      :           1.1858

Technical View                     :             LONG ABOVE 1.1878

Target                                   :            1.1891, 1.1898, 1.1911, 1.1931

Technical View                     :             SHORT BELOW 1.1838

Target                                   :            1.1825, 1.1816, 1.1801

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