Forex Today: Dollar keeps rallying, gold plummets

FXStreet Team FXStreet

What you need to know on Thursday, February 18:

Demand for the greenback persisted, backed by higher US Treasury yields, as those on long-term government debt reached fresh one-year highs. Upbeat US Retail Sales, probably as a result of stimulus checks, further supported the American currency.

The FOMC published the Minutes of their latest meeting, which showed that policymakers believe it’s premature to talk about tapering QE, as assets purchases would remain at current levels until Q1 2022. Policymakers also noted that the pace of the economic recovery has moderated in recent months.

European indexes closed in the red, but US ones managed to trim most of their early losses following the release of the FOMC Meeting Minutes, amid renewed hopes for more easy money coming.

The shared currency was the worst performer, nearing 1.2000 against its American rival. GBP/USD lost the 1.3900 threshold but the downside remains limited by upbeat UK inflation figures.

Gold prices plummeted. The bright metal traded as low as $1,769.40 a troy ounce, a fresh 2021 low, ending the day around 1,774. Crude oil prices began the day with the wrong footing, but recovered ahead of the close, amid output disruptions in the US due to freezing temperatures in Texas.

European restrictive measures due to the ongoing pandemic will likely continue. Vaccines´ roll-out goes slowly but marching, yet the number of new cases is far from optimal. In the UK Prime Minister Boris Johnson said that restrictive measures will be lifted with caution, adding that he expects the process to be irreversible.

Cryptocurrencies Price Prediction: Bitcoin, Ripple & Uniswap – American Wrap 17 February

US Stocks Today: Records in sight again as CCIV trends and Bitcoin busts it

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD stays slightly offered below 1.3600

Following an initial drop to fresh six-day lows, GBP/USD now picks up some updside traction and trades in levels just shy of the 1.3600 barrier on Thursday. The generalised cautious tone among market participants continue to underpin the Greenback ahead of Friday’s data releases and the Fed Warsh’s speech.

EUR/USD challenges 1.1650; US Dollar remains inconclusive

EUR/USD now manages to regain some composure, trimming earlier losses and reclaiming the mid-1.1600s on Thursday. The pair’s pullback comes on the back of marginal gains in the US Dollar, as market participants now shift their attention to Friday’s NFP revision and the speech by Chair Warsh at the Jackson Hole Symposium.

Gold struggles to reclaim $4,600

Gold adds to Wednesday’s pullback, although it manages to pick up some pace and come closer to the $4,600 mark per troy ounce on Thursday. In the meantime, the yellow metal remains on the back foot despite the widespread caution and the lack of clear direction of the US Dollar.

Crypto Today: Bitcoin, Ethereum, XRP bulls regain strength amid steady capital inflows

Cryptocurrency prices are broadly edging higher on Thursday, led by Bitcoin’s uptick near $80,000. Altcoins mirror Bitcoin’s short-term bullish outlook, with Ethereum trading above $2,500 and Ripple hovering above its key $1.40 support.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.