Forex Today: Dollar hurt, China to set the tone

Valeria Bednarik FXStreet

What you need to know on Monday, August 16:

The greenback plummeted following the release of US Michigan Consumer Sentiment, down to an almost 10-year low in August. The sentiment collapsed as the spread of the Delta variant in the country spurred concerns about the economic comeback.

US Treasury yields were sharply down, although Wall Street managed to post modest gains, with the DJIA and the S&P reaching record highs.

The EUR/USD pair approached the 1.1800 figure, while GBP/USD stalled its recovery well below the 1.3900 level. European currencies suffer from tepid local data indicating a slow economic comeback in the Old Continent.

The USD/JPY pair turned bearish, breaking below the 110.00 level. It stands at around 109.50. On the other hand, commodity-lined currencies posted modest recoveries. The Canadian dollar was among the worst performers, as crude oil prices edged lower, with WTI settling at $67.75 a barrel. AUD/USD settled around 0.7370, despite soaring gold prices.The bright metal accelerated its advance by the end of the week, settling at $1,779.50 a troy ounce.

China will publish July Retail Sales and Industrial Production figures at the weekly opening. The numbers will likely set the tone for Monday’s trading

Bitcoin price eyes $56,000 but lack of leveraged long positions may hinder rally

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold: Will US CPI data trigger a range breakout?

Gold retakes $5,000 early Friday amid a turnaround from weekly lows as US CPI data loom. The US Dollar consolidates weekly losses as AI concerns-driven risk-off mood stalls downside. Technically, Gold appears primed for a big range breakout, with risks skewed toward a bullish break.

Bitcoin, Ethereum and Ripple stay weak as bearish momentum persists

Bitcoin, Ethereum and Ripple remain under pressure, extending losses of over 5%, 6% and 4%, respectively, so far this week. BTC trades below $67,000 while ETH and XRP correct after facing rejection around key levels. With bearish momentum persisting and prices staying weak, the top three cryptocurrencies continue to show no clear signs of a sustained recovery.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.