Forex Today: Risk-off to continue leading the way

Valeria Bednarik FXStreet

What you need to know on Monday, July 19:

The dollar keeps strengthening on growth-related concerns. Mixed data released in the US on Friday somehow confirmed investors are concerned about the slower pace of growth. Wall Street edged lower, posting substantial losses on Friday after posting record highs. US Treasury yields remained depressed, with that on the 10-year note settling at 1.30%.

High-yielding currencies were hit by the dismal mood. EUR/USD settled around 1.1800 while the GBP/USD pair fell to 1.3760, nearing a multi-month low of 1.3730. Commodity-linked currencies were sharply down. AUD/USD reached a fresh 2021 low of 07391, while USD/CAD finished the week at 1.2605.

Coronavirus: on Saturday, the UK reported 54,674 new coronavirus cases, the biggest one-day increase since January, and 41 new deaths. In the US, not all states are reporting as previously, although all indicators continued to rise. Nevertheless, the % of deaths among those vaccinated is lower of that of the common flu.

Gold suffered from the greenback’s strength, with the bright metal settling at $1,811.87. Crude oil prices consolidate losses on Friday, with WTI settling at $71.15 a barrel.

Dogecoin Price Prediction: DOGE primed for a 20% bounce

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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 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.