Forex Today: Dollar continues to shed ground

Valeria Bednarik FXStreet

What you need to take care of on Tuesday, May 24:

The greenback weakened on the first trading day of the week, amid a better market mood. US President Joe Biden said to be studying cutting tariffs on Chinese imports, which could save up to $80 billion in taxes for the country. Biden also called on OPEC to raise oil production, in the hopes it would help to cool down inflationary pressures. His comments helped to keep stocks afloat throughout the day, despite persistent inflation and growth-related concerns.

The EUR/USD pair flirts with 1.0700, helped by European Central Bank President Christine Lagarde. She said she expects the facilities program to end “very early” in the third quarter of the year, leaving policymakers in a position to exit negative interest rates by the end of the quarter. Also, this would allow a rate hike to take place in July, in line with forward guidance, according to Lagarde.

GBP/USD trades around 1.2580, also holding on to intraday gains, despite worrisome Brexit news. The UK has been long supporting the case to modify the Northern Ireland Protocol amid the barriers it creates in Northern Ireland and aims to legislate against it within the upcoming weeks.

Commodity-linked currencies benefited from the better tone of equities. AUD/USD trades around 0.7100, while USD/CAD is in the 1.2780 region.

The Swiss Franc appreciated against the greenback, with the pair now at around 0.9660, while USD/JPY is pretty much unchanged on a daily basis, trading at around 127.80.

Gold posted a modest advance and finished the day at $1,854 a troy ounce. Crude oil prices edged marginally lower, with WTI changing hands at $110.30 a barrel.

May preliminary S&P Global PMIs for major economies are due on Tuesday.

XRP price prompts fear amongst investors as technicals signal another sell-off

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.