Forex today: dollar -0.81% on market's incrementing bearish outlook
Forex today was seeing a low in the DXY to 91.405 and a high of 92.253 with the market's incrementing in fears over political uncertainties in the Whitehouse, N.Korea geo politics, and the Federal Reserve bank's incompetence.
The news that Trump could be teaming up with the Democrats to eliminate the debt ceiling which could potentially jeopardize the Republican's leverage when it comes to Trump's fiscal spending plans sent the dollar lower. Meanwhile, the N.Korean threat remains very much front and center on the geopolitical front and is highly concerning, albeit not so much that the yen could find further traction for a break below the 108 handle vs the greenback after a new YTD low was scored at 108.04 today. The euro rallied within a 130 pip round trip on the ECB meeting despite Draghi jawboning the currency lower. Sterling was firm on the coat tails of the euro and within a weak dollar environment, +0.48% vs the dollar in the session. The Candian dollar was strong again, +0.90% vs the greenback and the Antipodeans were also up 0.57% (AUD) and 0.46% in the Kiwi. Gold made a fresh high of $1,349 and WTI was held up at $49.66 the high on relief that Irma is not on a collision course with the Gulf of Mexico.
Key events in Asia
Key notes from US session
- Wall Street pares early gains as market sentiment weakens
- Trump, Schumer agree to pursue plan to repeal the debt ceiling - Washington Post
- U.S. Senate passes disaster aid, govt. funding, higher debt ceiling - Reuters
- US Pres. Trump: Military action would certainly be an option in N.Korea
- ECB: QE extension to be announced in October - Danske Bank
- Fed's Mester: Further gradual interest-rate rises will be needed
- Continue to expect broad dollar depreciation - Nomura
- US Dollar headed first daily close below 92 in more than 2 years