Forex Today: Panic took over financial markets

What you need to take care of on Tuesday, September 27:

The dollar maintained its bullish momentum and soared at the beginning of the week, pushing major pairs into fresh multi-year lows. A scarce macroeconomic calendar exacerbated risk-related trading as worldwide central bankers insisted on battling inflation at any cost.

The GBP/USD pair sunk to a record low of 1.0317 and now trades around 1.0690, still down on the day. The Bank of England was expected to step in, helping the pair recover, although it did not. In fact, Governor Andrew Bailey repeated they would not hesitate to alter interest rates as necessary to return inflation to the 2% target sustainably in the medium term, adding they are “closely monitoring” financial markets developments.  Nevertheless, he added that the latest developments would be fully assessed at their next scheduled meeting.

EUR/USD trades near a fresh two-decade low of 0.9549 as the EU sees no light at the end of the tunnel. European Central Bank President Christine Lagarde offered a speech and said that they may need to take additional measures to deal with inflation.

Commodity-linked currencies were also under strong selling pressure. AUD/USD bottomed at 0.6437 while USD/CAD surged to 1.3807. The USD/CHF pair was also up, reaching 0.9965. The USD/JPY finished the day up at 144.55.

Spot gold plunged at trades around $1,625 a troy ounce, while crude oil prices were also sharply down, with WTI now trading at $76.60 a barrel, nearing this year low at $74.25.

Global stocks closed in the red amid panic selling. The FTSE was the exception, helped by the plummeting Sterling. It added measly 2 points.

US Durable Goods Orders and CB Consumer Confidence are taking center stage on Tuesday.

 Bitcoin Price Prediction: Investors need to prepare for volatile breakout