Forex Today: Dollar eases as optimism fades

FXStreet Team FXStreet

What you need to know on Friday, February 19:

The greenback lost momentum, as demand receded. European currencies were the most benefited with EUR/USD peaking around 1.2090 and GBP/USD surging to a fresh multi-month high of 1.3985. Commodity-linked currencies posted modest advances against its American rival.

US Treasury yields eased. Worse-than-expected US employment-related data provided short-lived support, but yields ended the day in the red. Global indexes also fell, but Wall Street managed to bounce off lows ahead of the close.

The European Central Bank published the Accounts of its latest meeting, and as the US Federal Reserve did a day before, policymakers noted that ample monetary stimulus remains essential within the current pandemic context. Tepid US employment-related data somehow confirmed slowing progress in the sector and justified the Fed’s concerns.

Gold remained under selling pressure, but intraday losses were modest. Crude oil prices, on the other hand, posted a sharp decline with WTI settling just above $60.00 a barrel. The commodity fell despite fears of shortage due to weather conditions in Texas.

Market players await news on US stimulus and easing restrictive measures in Europe. Coronavirus immunization through vaccines continues with encouraging news coming from those countries in where campaigns are more advanced. Still, Pfizer and Moderna noted their shots are less effective against the South African strain.

Gamestop (GME) debate continues in Washington, Robinhood CEO says “I'm sorry”

Cryptocurrencies Price Prediction: Ethereum, Bitcoin & Tron – American Wrap 18 February

Author

FXStreet Team

FXStreet

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.