What you need to know on Wednesday, April 21:
The greenback extended its slide at the beginning of the day, to reach fresh monthly lows against most major rivals, but changed course during the European morning, amid the dismal tone of local equities. Wall Street was sharply down, providing another boost to the American currency.
The EUR/USD pair posted a modest intraday decline, settling at 1.2030, while the pound was among the worst performers, as GBP/USD trades near 1.3900 after topping 1.4008.
The Canadian dollar plummeted against its American rival amid
Exacerbating the dismal mood, gold prices plunged mid-US session after a US House panel passed a bill that would open OPEC ground to antitrust lawsuits over production cuts. It’s still unclear if the bill will be considered by the full chamber, but the headline sent WTI down to $ 61.46 a barrel. The commodity bounced back ahead of the close and settled at $ 62.50 a barrel.
The Canadian dollar plummeted against its American rival amid weaker oil prices. USD/CAD settled at 1.2614. The AUD/USD pair also eased but retained the 0.7700 mark.
Gold prices, on the other hand, ticked higher, with the bright metal settling at $ 1,779.50 a troy ounce.
US Treasury yields weakened, but the correlation with the greenback was broken. The yield on the 10-year Treasury note fell to 1.557%, ending the day just above such a low.
US Federal Reserve chief Jerome Powell said that too-low inflation harms American families and businesses. He reiterated that the central bank is fully committed to “both legs of our dual mandate,” and said once again that they expect inflation to advance this year, “in part reflecting transitory factors as the economy strengthens.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD climbs back above 1.0750 ahead of ADP, Fed Minutes
EUR/USD has regained lost ground above 1.0750 in the European session on Wednesday. The pair draws support from the renewed US Dollar weakness, in the aftermath of the dovish Fed Chair Powell's comments. Eyes turn to US ADP data, Fed Minutes.
GBP/USD retakes 1.2700, looks to US data/Fed minutes
GBP/USD is battling 1.2700 in European trading on Wednesday, attempting a modest bounce. Traders appear reluctant and prefer to wait on the sidelines ahead of the FOMC minutes while the UK elections on Thursday also keep them on the edge. US ADP data eyed as well.
Gold jumps toward $2,350, with eyes on key US events
Gold price is closing in on $2,350 in the European trading hours on Wednesday, staging a rebound amid a fresh leg down in the US Dollar. Gold price capitalizes on dovish Fed Chair Powell's remarks on Tuesday, which added to the September rate cut expectations. US ADP data and Fed Minutes on tap.
Bitcoin struggles around $64,000 level
Bitcoin faces resistance near the $64,000 daily level, leading to a 1.05% decline in trading on Wednesday. Ethereum and Ripple similarly encounter resistance, resulting in 1% and 0.5% declines, respectively.
ADP Employment Change Preview: US private sector expected to add 160K new jobs in June
The United States ADP Research Institute will release its monthly report on private sector job creation for June. The announcement is expected to show that the country’s private sector added 160K new positions in June after adding 152K in May.