Forex Today: Dollar returns, gold collapses

FXStreet Team FXStreet

Here is what you need to know on Wednesday, August 12:

Stocks rallied after US President Trump said he expects the US economy to grow at a record pace in the upcoming weeks, hinting he could cut taxes on capital gains and for middle-income families. Wall Street lost momentum ahead of the close, trimming intraday gains and closing in the red.

The dollar initially fell with mounting risk-appetite, but recovered it good shape in the US afternoon, recovering the ground lost against its high-yielding rivals and reaching fresh highs against most other major currencies.

Gold plunged, with spot down to $1,909.90 a troy ounce, shedding roughly $120.00 in the day. Crude oil prices followed equities’ behaviour, ending the day in the red amid dollar’s comeback. WTI settled around $41.60 a barrel.

UK employment data was mixed, as the ILO unemployment rate remained steady at 3.9% in the three months to June, better than the 4.2% expected. However, the Claimant Count Change for July disappointed by jumping to 94,400, far worse than the 10K projected.

US Treasury yields reached a one-month high amid optimism

Cryptocurrency Market News: Ethereum slides below $380 as the market starts to lose its positive sentiment

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FXStreet Team

FXStreet

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.