Forex Today: Watch out for some dollar’s gains

FXStreet Team FXStreet

Here is what you need to know on Monday, August 10:

The dollar closed the week with a firmer tone, partially backed by an upbeat employment report, but also by US President Trump’s decisions. On Friday, the US administration imposed sanctions on Hong Kong’s chief leader, Carrie Lam, and ten other senior officials for their roles in the political turmoil in the region, also anticipating fiscal stimulus executive orders, which finally came on Saturday.

Trump signed four orders, which extend unemployment benefits by $400, suspends the collection of payroll taxes till December, stop evictions from rental housing that has federal financial backing and extend zero per cent interest on federally financed student loans. Meanwhile, the US Congress is still unable to reach an agreement on fiscal aid. The news could boost the greenback at the beginning of the week.

The US employment report released Friday was better than anticipated but indicated the US path to recovery that lies ahead is still long and bumpy.

Majors eased from fresh multi-month highs, with most currency pairs ending the week little changed. Somehow, it could be an early sign of the dollar’s selling exhaustion. Anyway, the greenback has not much of a background to run steadily after a corrective advance.

Bright metals continued strengthening to records. Gold pulled back from an all-time high of 2,075.19 to the current 2,034 price zone. The movement seems corrective, and bears have little to do unless it breaks 2,000 in which case, profit-taking would exacerbate the decline.

China will publish July inflation data on the first day of the week. The macroeconomic calendar will be mostly light until the end of the week.

Crypto bears dominate, Ripple breaches $0.2900

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FXStreet Team

FXStreet

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.