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 appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.