Forex Today: Optimism proved ephemeral

Valeria Bednarik FXStreet

What you need to take care of on Tuesday, July 19:

The dollar spent most of the first day of the week on the back foot, losing ground against most of its major rivals. However, it bounced back in the US afternoon, as Wall Street was unable to retain its early gains and turned red.

The greenback began easing on Friday as US encouraging data temporarily cooled recession-related concerns. A scarce macroeconomic calendar on Monday kept it on the downside ahead of central banks' decision. The US Federal Reserve entered its blackout period ahead of next week's meeting, while the European Central Bank will announce its monetary policy next Thursday.

The energy crisis in Europe could be a game changer in EUR/USD, which recovered up to 1.0200. The Russian Gazprom company has declared force majeure on supplies and said it could not guarantee gas supplies to Europe because of "extraordinary" circumstances. The International Energy Agency has warned the EU must reduce gas consumption ahead of the winter. The pair currently trades at around 1.0150.

A softer dollar helped GBP/USD to reach 1.2039, but the pair retreated towards the current 1.1960 area amid a worsening mood at the end of the day.

Commodity-linked currencies hold on to most of their early gains, with AUD/USD trading at 0.6815 and USD/CAD at 1.2965. Finally, safe-haven JPY and CHF posted modest gains against the USD.

Gold aimed to recover some ground, but ended the day at around $1,708 a troy ounce and is at risk of falling further. Crude oil prices, on the other hand, retain most of their early gains, with WTI now trading at $98.80 a barrel.

Ethereum Price Prediction: A true bull run or just another suckers' rally?

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 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.