Here is what you need to know on Tuesday, April 20:
Markets are calm after a decline on Monday but the dollar remains depressed. Mixed news about the virus and US infrastructure are eyed, while cryptocurrencies extend their decline.
The US dollar is on the back foot for the second consecutive day, with EUR/USD changing hands at around 1.2060, the highest since early March. The greenback's decline comes despite an uptick in US Treasury yields. Returns on benchmark ten-year bonds are around 1.60%.
The market mood is relatively calm, yet Wall Street ended Monday's session with moderate falls, not gains. Earnings season is in full swing.
US President Joe Biden hosted members of Congress from both parties in an attempt to garner support for his infrastructure spending programs. Statements coming after the encounter have shown an upbeat mood but no substantial progress.
GBP/USD has managed to take advantage of dollar weakness to peek above 1.40 with Britain's successful vaccination campaign also helping. The UK's jobs figures are set to show a minor increase in the Unemployment Rate from 5% to 5.1%.
Gold is trading around $1,770, consolidating its gains from previous days and weathering the increase in US yields.
Chinese President Xi Jinping has warned the US not to "boss around" and also cautioned against trade decoupling. He committed his country, the world's second-largest economy to fighting climate change.
Commodity currencies are big beneficiaries, with AUD/USD advancing toward 0.78 despite minutes from the Reserve Bank of Australia stating that the jobless rate remains too high.
Coronavirus: India has continued suffering record daily infection levels above 270,000, weighing on the local stock market and on the rupee. In the US, cases are flattening after several days of gains, potentially showing that the immunization campaign is bearing fruit. Some 40% of Americans have received at least one jab.
Cryptocurrencies have been extending their losses, with Bitcoin pressured around $55,000 and Ethereum suffering its sixth consecutive down day, changing hands at around $21,40. Analysts see the drop as a healthy correction. XRP is around $1.30 and Dogecoin, which started as a joke, is already worth some $54,000.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Further losses retarget the 200-day SMA
Further gains in the greenback and a bearish performance of the commodity complex bolstered the continuation of the selling pressure in AUD/USD, which this time revisited three-day lows near 0.6560.
EUR/USD: Further weakness remains on the cards
EUR/USD added to Tuesday’s pullback and retested the 1.0730 region on the back of the persistent recovery in the Greenback, always against the backdrop of the resurgence of the Fed-ECB monetary policy divergence.
Gold flirts with $2,320 as USD demand losses steam
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
Bitcoin price dips to $61K range, encourages buying spree among BTC fish, dolphins and sharks
Bitcoin (BTC) price is chopping downwards on the one-day time frame, while the outlook seen in the one-week period is a horizontal trade. In this shakeout moment, data shows that large holders are using the correction to buy up BTC.
Navigating the future of precious metals
In a recent episode of the Vancouver Resource Investment Conference podcast, hosted by Jesse Day, guests Stefan Gleason and JP Cortez shared their expert analysis on the dynamics of the gold and silver markets and discussed legislative efforts to promote these metals as sound money in the United States.