Forex Today: Dollar reigns in a risk averse environment and ahead of central banks’ announcements

Valeria Bednarik FXStreet

What you need to take care of on Tuesday, May 3:

The American Dollar benefited from a poor market mood, ending the day higher against most major rivals. The dismal sentiment was the result of a combination of mounting tensions between Russia and Europe, downbeat macroeconomic figures, and concerns related to aggressive central banks, as the RBA, the US Federal Reserve and the BOE are set to announce monetary policies this week.

The German Economy Minister Robert Habeck noted that there is still no unity among EU member states on an oil embargo on Russia, although Finance Minister Christian Lindner added that it is still possible. At the same time, European Central Bank vice-president Luis de Guindos said that a rate hike in July is possible, although unlikely. The EUR/USD pair edged lower and traded around the 1.0500 level.

US data mixed expectations. The official ISM Manufacturing index printed at 55.4, much worse than the 57.6 expected. Nevertheless, Wall Street remained pressured for most of the session, although it ended the day mixed, as the DJIA and the Nasdaq managed to close with gains.

The GBP/USD pair settled around 1.2480, while AUD/USD trades at round 0.7050 ahead of the RBA. The central bank is expected to raise rates by 15-25 bps, pulling the trigger for the first time in over a decade.

The USD/CAD pair settled at 1.2870, despite higher oil prices. WTI ended the day at around $105.60 a barrel.

Safe-haven CHF and JPY shed ground vs the dollar, as well as Gold. The bright metal currently trades at around $1,860 a troy ounce.

Restrictions in China due to coronavirus extended in Beijing, further fueling concerns about global growth. The official Chinese NBS PMIs released over the weekend indicated a sharp economic contraction in April.

XRP price proposes lower targets amidst SEC delays and inflation pressures

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 weakens toward 1.1600 as firm US data revives the US Dollar

The EUR/USD edged lower on Thursday, down some 0.21% as market sentiment remains risk averse due to the ongoing conflict in the Middle East. This and solid US economic data pushed the pair lower towards the 1.1600 figure ahead of Friday’s session.

GBP/USD drifts lower heading into NFP range

GBP/USD edged lower by 0.2% on Thursday, settling close to 1.3350 in a strained trading session that kept the pair pinned near three-month lows. Price briefly recovered earlier in the day on reports that Iran had indirectly signaled openness to talks with the CIA, but the bounce faded as Israeli officials reportedly advised Washington to disregard the overture.

Gold slumps below $5,100 as US Dollar gains

Gold price tumbles to near $5,085 during the early Asian session on Friday. The precious metal loses ground amid a stronger US Dollar. The US employment report for February will take center stage later on Friday.

NYSE parent Intercontinental Exchange partners with OKX, invests at a $25B valuation

OKX announced an investment from Intercontinental Exchange, raising its valuation to $25 billion, alongside a partnership to expand regulated crypto futures and tokenized equity offerings globally.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.

Ripple tests recovery strength amid steady ETF inflows, growing retail interest

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.