USD Steady at A Two-Week High
|The US dollar was seen holding on to the gains, settling near a two-week high by Thursday's close. The gains came as the trade tensions eased and focus once again shifted to the economic data.
A delegation from Washington is expected to travel to Beijing in order to continue the trade talks, according to reports. The risk-off sentiment eased further as investors flocked to risky assets, pulling out from safe haven assets.
Euro Declines for the Fourth Session
The common currency posted declines for the fourth consecutive session. The euro closed near a 7-day low. The US administration postponed the hike in tariffs on automobile imports that were due to come into effect this weekend. The eurozone's final inflation report is due today. Economists forecast that final inflation figures for April will see headline inflation rising 1.7% while core inflation is forecast to rise 1.2% on a year over year basis.
Can the EURUSD Pare Losses?
The common currency fell to lows of 1.1172 on Thursday. Early Asian trading shows a possible rebound in price action. If this reversal is confirmed, then the EURUSD could possibly push higher in the near term. The short-term upside target is seen at 1.1223 indicating that the sideways range continues. The EURUSD is caught within the major range of 1.1250 and 1.1140.
Crude Oil Rises 1.5% on the Day
Oil prices posted a strong rebound on Thursday as WTI crude oil settled at 63.26 a barrel. The reversal in price came due to the rising tensions in the Middle-East. OPEC and Russia are planning to meet this weekend to discuss security issues and to prepare the groundwork for the semi-annual OPEC meeting in Vienna next month.
Can WTI Crude Oil Maintain the Gains?
The reversal from the 60.33 level of support has seen oil prices gradually pushing higher. Following the breakout above 62.85 resistance, oil is seen retracing back to this level. As long as it holds as support, we expect further gains in the near term. The next main target to the upside comes in at 64.65. A retest of this level as resistance could, however, cap the gains in the medium term.
Gold Retreats, Losing 0.8% on the Day
The precious metal extended declines on Thursday as investors shunned risk assets. Gold prices settled near the 1285 handle by Thursday's close. The declines came as economic data from the US was fairly better. Building permits grew at a pace of 0.6% on the month while housing starts rose 5.7%.
Will XAUUSD Continue to Decline?
The recent drop to the 1285 handle was as expected. Price action is currently testing this level for support. If there is a reversal at this level, then the outlook remains to the upside for gold prices. Alternately, a breakdown below the 1285 support could potentially signal the previous bearish trend resuming.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.