Forex Today: Risk appetite pressures the greenback

Valeria Bednarik FXStreet

What you need to know on Thursday, October 21:

The greenback remained under selling pressure and shed ground against all of its major rivals, including that considered safe-haven. The American dollar enjoyed from some temporal demand early in the European session, as US government bond yields jumped to fresh multi-month highs, with the yield on the 10-year Treasury note peaked at 1.673%, but retreated toward 1.64%. Earlier in the year, the yield moving past 1.70% used to trigger sharp dollar’s demand.

The EUR/USD pair trades around 1.1650, posting a modest intraday advance. European Central Bank policymaker Francois Villeroy repeated that current inflation spikes are expected to be temporary. The EU released the final version of the September Consumer Price Index, which was confirmed at 3.4% YoY in September, while the core annual reading printed at 1.9%, validating the European Central Bank’s wait-and-see stance.

GBP/USD finished the day above 1.3800 despite mixed UK inflation data. The Consumer Prices Index came in at 3.1% YoY in September when compared to 3.2% recorded in August. The core reading fell to 2.9% YoY last month from 3.1% registered in August, falling short of the consensus forecast of 3.0%. The BOE is anyway expected to raise rates sooner rather than later, which helped to keep the pound afloat.

Commodity-linked currencies reached fresh multi-month highs versus the greenback. AUD/USD trades around 0.7520, while USD/CAD pressures the 1.2300 mark. The USD/JPY pair ticked lower and settled at 114.26.

Gold posted a third consecutive higher high on a daily basis and settled at around $1.784 a troy ounce. Crude oil prices dipped ahead of the US opening but ended the day at fresh multi-year highs. WTI settled at $83.25 a barrel.

Bitcoin price targets $125,000 as next major all-time high

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 looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.