Forex Today: Dollar runs on tightening speculation

FXStreet Team FXStreet

What you need to know on Thursday, May 13:

The American currency rallied to fresh weekly highs against most major rivals, after the US reporter higher-than-expected April inflation. Stocks edged firmly lower while US Treasury yields rose to their highest in one month, as CPI figures suggest that the Fed is wrong about its view on inflation rising temporarily. Speculative interest rushed to price-in sooner than anticipated monetary policy tightening.

The EUR/USD pair fell to 1.2065, while GBP/USD was down to 1.4055, both ending the day near such lows. Market players ignored encouraging UK data, as the country reported generally better-than-anticipated figures. The Q1 Gross Domestic Product came in at -1.5%, while the March monthly GDP printed at 2.1%. In the same month, Industrial Production rose by 3.6% YoY, while Manufacturing Production was up by 4.8% YoY. The positive headlines were no surprise amid the impressive immunization campaign in the country leading to economic reopenings.

The Australian dollar was also sharply down against the greenback, while USD/CAD held within familiar levels as oil prices continued to advance. USD/JPY trades near its May high at 109.69.

Gold seesawed between gains and losses, ending the day in the red at $ 1,820 a troy ounce. Crude oil prices eased ahead of the close, although WTI settled at $ 65.80 a barrel.

The focus now shifts to US Retail Sales, to be out next Friday. Better than expected figures could give yet another boost to the greenback and put it in a bullish path.

Top 3 Prediction Bitcoin, Ethereum, Ripple: BTC may drop to $34,000, taking the rest of the market with it

Author

FXStreet Team

FXStreet

EUR/USD faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

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.