Forex Today: Hopes to keep backing the dollar’s demand

FXStreet Team FXStreet

What you need to know on Monday, February 8:

The greenback gave up ground on Friday, ending the week with uneven results. The catalyst was a mixed US employment report, which showed a tepid job creating a downward review to December figures, but an improving unemployment rate.

Commodity-linked currencies were able to post modest weekly gains against the dollar, while the pound was the best performer. GBP/USD flirted with the multi-month high at 1.3758 amid ramping coronavirus immunization in the UK and BOE’s rate decision, cooling down expectations for negative rates.

The EUR/USD pair closed in the red around 1.2050, recovering from a fresh 2021 low at 1.1951. USD/JPY hit 106.76 before shedding some pips, ending a second consecutive week with substantial gains.

ECB’s chief Christine Lagarde spoke through a French newspaper on Sunday and said she expects the EU to pick-up in the summer, stressing that public authorities will have a difficult job weaning the economy off of emergency support.

Optimism prevails amid hopes for a new US stimulus package, as Democrats are working on passing US President Joe Biden’s bill of $1.9 trillion without Republican support.

Wall Street flirted with all-time highs on Friday, while US Treasury yields surged to their highest since March 2020.

In the coronavirus front, the global number of new contagions and deaths continues to recede. Vaccine-immunization continues at an even pace, amid production and delivery delays. Meanwhile, Israel announced it may have found a cure for coronavirus after applying a medication called EXO-CD24. Out of 30 serious patients treated, 29 were released from hospital within five days.

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EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.