Forex Today: Dollar falls, gold up amid upbeat COVID-19 data, Boris' ICU stay causing concerns

Yohay Elam FXStreet

Here is what you need to know on Tuesday, April 7:

UK Prime Minister Boris Johnson is in intensive care and receiving oxygen amid complications from COVID-19. The dramatic news has sent the pound lower after previous messages from the government aimed to calm the public. Foreign secretary Dominic Raab has taken over as the UK is set to reach the peak of the disease in the coming days.

Elsewhere, the market mood remains upbeat, with the dollar down and Gold resuming its rally. The precious metal is getting comfortable above $1,650.

Asian markets are on the rise and S&P futures are stable after a robust rally on Monday. Italy, Spain, France, and Germany continued reporting encouraging coronavirus figures in both the number of infections and deaths. Italian Prime Minister Giuseppe Conte refused to talk about easing restrictions, but exit strategies are being drawn across the continent.

More stimulus: Stocks also advanced in response to the White House seemingly supporting another stimulus package, including handing out more money to Americans as House Speaker Nancy Pelosi suggested.

Eurozone: German Chancellor Angela Merkel said the EU is in the most difficult moment since its establishment as the crisis triggers substantial economic damage across the old continent and leaders are at loggerheads around issuing mutual bonds. German and French economic data predating coronavirus is due out.

Global COVID-19 cases have topped 1.3 million and taken the lives of nearly 75,000. US cases top 360,000.

AUD/USD: The Reserve Bank of Australia has left the interest rates unchanged as expected and hinted it would taper down liquidity injections. AUD/USD has been on the rise in response.

Japan is entering a month-long state of emergency and imposing restrictions in several areas, including the capital Tokyo.

Oil is on the rise amid reports that the OPEC+ is getting closer to an agreement to cut production. Russia and Saudi Arabia are negotiating an accord that may also include other countries. A videoconference is scheduled for Thursday.

Cryptocurrencies have been consolidating their gains, with Bitcoin trading above $7,000.

More Explained: Which indicators matter in coronavirus times

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.