Forex Today: Fears cooled but remain in the background

What you need to know on Wednesday, July 21:

The dismal market mood extended through the first half of Tuesday, improving a bit during US trading hours. Wall Street recovered, as the three major indexes trimmed a good bunch of their Monday’s losses. Nevertheless, the greenback remained strong and managed to post higher highs for the week against most major rivals.

As it happened lately, the EUR was resilient to broad dollar’s demand, while the pound and the aussie were the worst performers. The first is being affected by Brexit jitters and covid-related headlines, while the latter suffered from Australian lockdowns hurting economic progress.

As crude oil prices stabilized, the USD/CAD edged lower. WTI settled at $ 67.40 a barrel, helping the pair to settle at around 1.2680 after topping 1.2800 earlier in the week.

Concerns about the spread of the Delta variant and heating US inflation are still the main themes and could trigger another run to safety.

US Treasury yields dipped at the beginning of the day, recovering ahead of the close to end the day in the green. The yield on the 10-year Treasury note plunged to 1.126% but closed the day at 1.20%.

Gold prices surged intraday, flirting with 1,825 before pulling back and ending the day in the red at around $1,808.00 a troy ounce.

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