The dollar fell broadly on Monday, giving back more of its recent gains as persistent concerns about the Delta-driven COVID-19 wave tempered hawkish expectations for Fed Chair Jerome Powell's Jackson Hole speech on Aug.
Dollar weakness was helped by falling Markit PMIs nW1N2P6046, which lent support to Fed Chair Powell’s transitory inflation outlook and reduces the potency of the growing cadre of Fed early taper supporters.
The Fed's own decision to hold the Jackson Hole symposium online, rather than in person as planned, demonstrated the growing risks to policymakers' confidence that Delta surge wouldn't pose a serious threat to the economy.
Comments by Dallas Federal Reserve President Robert Kaplan, a recent hawk who said on Friday that he may alter his view on tapering as the COVID-19 wave widens, also left an impression on markets.
EUR/USD extended its recovery from Friday's nine-month low, rising as far as 1.1744 after euro zone PMI data hinted at strong growth despite rising COVID concerns.
USD/JPY remained anchored near flat as recent haven flows negated broad dollar weakness.
USD/JPY remains bounded by 55-day moving average resistance at 110.14 and supported by its 100-DMA by 109.65.
GBP/USD led majors higher, gaining 0.8% to 1.3729 by late U.S. trade.
UK short-sterling indicated slightly higher rates in the belly of the strip while U.S. Eurodollar contracts rose a touch.
The U.S. taper rethink amid expectations of a H1 BoE rate hike boostedsterling-bullish sentiment.
AUD/USD rallied off trend lows, gaining 1.05% to 0.7213 by session's close.
Oil rose 5.5%, copper gained 2.4%, helping lift AUD off Friday’s nine-month low.
Bitcoin dipped back below $50k in late-U.S.
trade after breaking above it overnight, a bullish signal. A move above 51.03k, the 61.8% Fibo of the April-June $64.9-$28.5k decline, is needed to catapult BTC back toward April’s all-time high.
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