Forex Today: Risk-on weighs on the greenback

Valeria Bednarik FXStreet

What you need to know on Monday, August 30:

The American dollar was sharply down on Friday, following words from US Federal Reserve Chair Jerome Powell. Speaking within the Jackson Hole Symposium, Powell said back in July, policymakers believed that it could be appropriate to start tapering this year, noting progress in employment but also adding the worrisome spread of the Delta variant. “We will be carefully assessing incoming data and the evolving risks,” he said. Quite a dovish comment that sent stocks up and the dollar down.

The Swiss Franc was the best performer against the greenback, while the Japanese Yen was the worst. EUR/USD flirted with 1.1800, holding nearby, while GBP/USD was rejected from around 1.3800. Commodity-linked currencies advanced, with AUD/USD currently trading around 0.7300 and USD/CAD standing at around 1.2610.

Spot gold soared to $1,819.26 a troy ounce, its highest in three weeks, ending the week around 1,817. Crude oil prices saw a modest advance, with WTI settling at $68.60 a barrel.

Wall Street rallied, with the S&P500 and the Nasdaq Composite posting record closes amid speculation the US Federal Reserve will maintain financial support, despite hawkish comments from multiple Fed officials.

US Treasury yields retreated from weekly highs but settled at the upper end of their range. The yield on the 10-year Treasury note stands at 1.31%.

Bitcoin price yearning for a firm break above $50,000 amid looming options expiry

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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.