Breaking: USD surges across the board with EUR/USD erasing 100 pips of gains

Yohay Elam FXStreet

Stocks have turned south and the greenback is on the rise once again. US bonds are in demand.

There are reports that Turkish forces are amassing around Idlib, ready to enter areas evacuated by US troops which are retreating from Syria. However, the Turkish Lira is not suffering from heightened volatility.

It seems like a correction of the Fed-related USD sell-off that we have seen recently.

EUR/USD fell to a low of 1.1458, down over 100 pips from the peak of 1.1569 it recorded earlier in the week.

GBP/USD is trading below 1.2800. It advanced above this level after reports came out regarding a Brexit delay. USD/JPY emerged from the lows and getting closer to 108.50.

Commodity currencies are falling with falling oil prices.

Earlier, the US inflation report came out exactly as expected, with Core CPI at 2.2% YoY.

Here is the EUR/USD chart:

The US Dollar was on the back foot after various Fed officials, including Chair Jerome Powell, sent dovish messages. They acknowledged market volatility and concerns about global growth, calling for patience on rates. Moreover, Powell said there is no specific amount of rate hikes. Raphael Bostic of the Atlanta Fed went as far as opening the door for a rate cut. Bullard took yet another step and criticized the rate hike in December.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD extends losses toward 1.1600 ahead of EU inflation data

EUR/USD extends the decline toward 1.1600 in the European session on Tuesday. The pair remains under pressure as surging energy prices amid the US-Iran war have increased the risks of higher inflation for the Old Continent. The focus is now on the Eurozone preliminary inflation reading for February.

GBP/USD hovers around 1.3400 with bearish pressure intact

GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold weakens below $5,300 as sustained USD buying counter Middle East tensions

Gold attracts some intraday selling and falls around $100 from the daily top, around the $5,380 area. The US Dollar climbs to a fresh high since January 20 and turns out to be a key factor exerting downward pressure on the commodity. However, concerns about a broader regional conflict in the Middle East continue to weigh on investors' sentiment and underpin demand for the traditional safe-haven bullion.

Stellar risks deeper losses as derivatives metrics turn negative

Stellar is trading red below $0.16 at the time of writing on Tuesday, after a slight recovery the previous day. Weakening derivatives data caps the recovery, while an unfavorable technical outlook projects a deeper correction for the XLM token in the upcoming days.

The market is not panicking it is repricing the probability distribution of Oil and time

At the end of the day, markets do not trade morality or geopolitics. They trade transmission channels. And the only channel that truly matters in this maelstrom runs through the price of energy and the time value of money.

Hyperliquid Price Forecast: HYPE rises on commodities demand amid US-Iran war

Hyperliquid (HYPE) steadies above $33 at press time on Tuesday, marking its fourth consecutive day of recovery in a broadly volatile market due to the ongoing US-Israel strikes on Iran.