Forex Today: Markets attempt recovery after sell-off, dollar firm, BOC eyed
|Here is what you need to know on Wednesday, April 21:
Markets are licking their wounds after falling on Tuesday, yet the risk-off mood continues supporting the dollar. Australian and UK inflation figures met estimates and the focus shifts to the BOC decision. Gold is holding up while cryptocurrencies are mixed.
S&P 500 futures have been edging higher after a day of losses in global equity markets in what seems like a correction after significant gains beforehand. Concerns about the spread of coronavirus in emerging markets were weighing on sentiment while America's improving situation is supporting Wednesday's recovery.
The US dollar holds onto its gains, with EUR/USD dropping off 1.2050 despite EU regulators' green light to using Johnson & Johnson's vaccines. COVID-19 cases in the old continent seem to fall from their highs.
GBP/USD is trading around 1.3950 after the UK Consumer Price Index came out at 0.7%, marginally below estimates. Producer prices surprised to the upside.
AUD/USD is hovering above 0.77 after CPI met estimates at 0.8% but Retail Sales came out at 1.4% in March, showing the resilience of the Australian economy.
The Bank of Canada is set to leave its interest rate unchanged at 0.25% and is set to publish new economic forecasts. Governor Tiff Macklem will hold a press conference and may comment on growing demand from the US, but concerns about a local housing bubble.
See Bank of Canada Preview: Dovish surprise to lift USD/CAD
Canada publishes inflation figures ahead of the BOC, and USD/CAD is trading around 1.26.
Cryptocurrencies: Altcoins jumped on Tuesday, with Etehreum and XRP standing out, while Bitcoin remains stuck at lower ground, around $55,000.
Gold extended its gains, marching toward $1,800 amid a drop in US yields. Returns on ten-year Treasuries stand at around 1.56%. Oil prices are more responsive to the risk-off mood, with WTI hovering around $62.
The pause that refreshes: Are currency markets hesitant to run with US data?
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.