Hawkish Fed message extends greenback rallyEUR/USD 🔽
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Last week, despite possible economic ramifications, Federal Reserve Chairman Powell reiterated the central bank’s priority to control inflation. As such, the US dollar continued its dominance over other currencies. USD/CAD rose to 1.3033, just reached 1.3065; USD/JPY added 100 pips to 137.52, then climbed to a month-high of 138.53.
Parity once again eluded the Euro, EUR/USD declined from 1.0064 to 0.9961. Fueled by energy security fears, some European Central Bank members also agreed with Chairman Powell’s comments to bring further rate hikes.
Meanwhile, GBP/USD fell to 1.1747, currently at 1.1668. The AUD/USD pair met resistance at the 0.700 level and returned to 0.689, Australian retail sales figures in July were at 1.3%, considerably more optimistic than the 0.3% forecast.
Gold futures prices were held back by a strong dollar, closing at $1,749.8 an ounce and dropping over $20. Investors are still speculating about the possible outcomes of the Iranian nuclear deal and the OPEC+ meeting in September, WTI crude futures mostly traded flat at $93.06 a barrel. Bitcoin dived below the key level of $20,000 to a closing price of $19,771.8.
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