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 bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.