Forex Today: Quiet start to a busy week

FXStreet Team FXStreet

Here is what you need to know on Monday, August 17:

The dollar remained intrinsically weak, amid mixed US data and news indicating that the US Congress decided to take a month-long holiday without agreeing on a stimulus package. Major pairs, however, closed the week little changed and held within familiar levels.

The USD/JPY pair was an exception, reaching a fresh August high on the back of resurgent US government debt yields. Inflation and employment data released these days came in better-than-anticipated, fueling hopes of a sooner than expected US economic comeback. The yield on the benchmark 10-year note peaked at 0.72% this week, to settle at 0.70%.

On Friday, US President Trump said in a press conference that he will not cut a deal with Democrats on the coronavirus relief bill because of the money they are seeking for cities and states. Congress members have left for a month-long holiday last Thursday.

Tensions between the US and China continue. On Friday news showed that a review of the trade deal that was supposed to take place over the weekend had been postponed without any new date scheduled.

Wall Street posted a modest advance, but summer doldrums took their toll on equities as the three major indexes remain within limited intraday ranges.

Gold prices collapsed this past week after hitting all-time highs, to stabilize around $ 1,950 a troy ounce. The metal shed some ground on Friday but held around its new comfort zone. Crude oil prices, in the meantime, remained stable, with WTI ending the week at $42.10 a barrel.

Japan is set to report early Monday its Q2 GDP, foreseen -27.2%.

BTC/USD extends sideways grind after failed attempt to take $12,000

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FXStreet Team

FXStreet

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

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.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.