Forex Today: Dollar gains one battle, not yet the war
|What you need to know on Wednesday, April 21:
The greenback extended its slide at the beginning of the day, to reach fresh monthly lows against most major rivals, but changed course during the European morning, amid the dismal tone of local equities. Wall Street was sharply down, providing another boost to the American currency.
The EUR/USD pair posted a modest intraday decline, settling at 1.2030, while the pound was among the worst performers, as GBP/USD trades near 1.3900 after topping 1.4008.
The Canadian dollar plummeted against its American rival amid
Exacerbating the dismal mood, gold prices plunged mid-US session after a US House panel passed a bill that would open OPEC ground to antitrust lawsuits over production cuts. It’s still unclear if the bill will be considered by the full chamber, but the headline sent WTI down to $ 61.46 a barrel. The commodity bounced back ahead of the close and settled at $ 62.50 a barrel.
The Canadian dollar plummeted against its American rival amid weaker oil prices. USD/CAD settled at 1.2614. The AUD/USD pair also eased but retained the 0.7700 mark.
Gold prices, on the other hand, ticked higher, with the bright metal settling at $ 1,779.50 a troy ounce.
US Treasury yields weakened, but the correlation with the greenback was broken. The yield on the 10-year Treasury note fell to 1.557%, ending the day just above such a low.
US Federal Reserve chief Jerome Powell said that too-low inflation harms American families and businesses. He reiterated that the central bank is fully committed to “both legs of our dual mandate,” and said once again that they expect inflation to advance this year, “in part reflecting transitory factors as the economy strengthens.”
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.