Dollar Keeps Its Handle
The US index closed positively for the fourth day in a row as continued talks of a stimulus package remain hopeful.
The dollar is reacting to the strong producer price index (PPI) data from the US yesterday. This comes in addition to the news that Russia has tested a new coronavirus vaccine.
The USDJPY pair closed higher 0.21% on the Tuesday trading session. This is thanks to risk sentiment shifting from the beginning of the week due to a strong dollar.
Eurozone Positive but US Dollar Still Weigh In
EURUSD closed indecisively yesterday. However, it still maintains its ascendancy over the euro from last week.
German and eurozone recovery prospects improved in August according to the latest ZEW survey.
Positive sentiment remained as experts revised estimations of their GDP forecast for the eurozone to -8.6%, from -12%.
Concerns Mount Up for the Pound
The pound fell 0.17% yesterday as UK employment sees the largest quarterly fall in a decade. Employment numbers were concerning as analysts stated the figures will worsen until 2021.
Elsewhere, the UK government has been accused of making errors by rushing into trade negotiations. Could this be a sign to come over the ongoing Brexit talks?
Sentiment Shifts for Aussie & Kiwi
Aussie and Kiwi pairs declined as news from the region pushed sentiment to negative territory.
The AUSUSD dropped slightly as the market reacted to disappointing wage index price data.
NZDUSD was also dovish as the RBNZ followed in the footsteps of other central banks by keeping their interest rates unchanged.
Reality Check for US Indices
The S&P closed lower for the first time in eight days as technology shares dropped yesterday. The index closed 0.8% lower as it encountered its worst day since July 23rd.
The Nasdaq also closed 1.7% lower as Facebook, Amazon, and Microsoft each recorded a daily loss.
Gold Slumps on Sell-Off
Gold retreated more than $100 yesterday as profit-taking and new risk-on sentiment made up the sell-off.
Fiscal stimulus and Fed measures drove the safe haven back down by a significant 5.7%.
WTI Awaits EIA Report
The recent API report showed US crude supplies dropped by 4.4m barrels last week. WTI finished the trading session 0.59% lower. However, it held its grasp above the psychological $40 handle.
As we await the EIA report later today, will we see further support or resistance?
