Weekly wrap — 25.Sep.2020
EURUSD — So much for 1.30 in the Eurodollar! The EURUSD has fallen as low as 1.16 this week and with the USD still holding the potential for further room to strengthen, the Eurodollar could be valued at 1.15 within days.
USDTRY — The central bank fights back? The Turkish central bank sent a shock yesterday when there was an unexpected interest rate hike in an effort to stop the Lira falling to repeated historic lows. It still hit another one anyway and the Lira will be one of the focus points of our week ahead.
Gold — When investors rush for cash and the USD, even the shield of Gold as a safe-haven is not strong enough to withstand an increasingly powerful Dollar during a pandemic. Spot Gold prices broke below the psychological $1900 support level to drop from $1955 to $1848 this week, and Gold can still correct lower should the USD remain the asset of choice.
US markets finished higher yesterday, as the DJ30, SPX500 and NASDAQ100 all closed in the green. However, the three main indices are still negative for the week. This morning, futures indicate that the recovery will continue, as the DJ30 is expected to open 100 points higher at the time of writing.
Cryptos show recovery: The cryptocurrency market was seen higher over the past 24 hours, as all major cryptos were in the green at the time of writing. Bitcoin was up more than 3.5%, inching its way towards $10,700. Ethereum also recovered some losses, up more than 5% at the time of writing.
