Forex Today: Dollar corrects, but remains the weakest

FXStreet Team FXStreet

What you need to know on Tuesday, May 11:

The greenback kick-started the week extending its slide amid the poor US employment report released on Friday but got to recover some ground during US trading hours. A scarce macroeconomic calendar kept majors within limited intraday ranges, as investors await US employment figures to be out later this week.

The EUR/USD pair peaked at 1.2177 but ended the day unchanged in the 1.2140 price zone. GBP/USD soared as investors chose to ignore persistent political risks. UK Prime Minister Boris Johnson called on Sunday for talks with Scotland, Wales and Northern Ireland after Scotland SNP's pro-independence party won parliamentary elections. On a positive note, local elections in the UK further strengthened Conservative Prime Minister Boris Johnson's party, with the opposite Labour party losing a parliamentary seat.

Commodity-linked currencies reached fresh multi-month highs against the greenback, as base metals rallied. Copper reached all-time highs, while gold posted an intraday three-month high. Metals retreated ahead of the close. Oil prices gapped higher, but ended the day in the red, with WTI closing at $ 64.75 a barrel.

Markets are in wait-and-see mode as the US will report inflation figures on Wednesday and Retail Sales on Thursday.

Top 3 Prediction Bitcoin, Ethereum, Ripple: ETH soars above $4,000, as BTC and XRP struggle

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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.