Forex Today: Dollar eases within range

FXStreet Team FXStreet

Here is what you need to know on Wednesday, July 1:

The market dumped the greenback in the last trading day of the quarter, although major pair remained within familiar levels for a third consecutive week. The EUR/USD pair is ending June pretty much unchanged just above 1.1200

US Federal Reserve chair Powell testified before the House Financial Services Committee. He referred to the “extraordinary uncertainty” to the economic outlook related to the ongoing pandemic but added that some macroeconomic figures are pointing in the right direction, as the economy entered a new phase sooner than expected. His comments underpinned equities.

The GBP/USD pair recovered towards 1.24, despite Brexit-related headlines indicating the UK is heading into a no-deal exit. EU’s chief negotiator Michel Barnier accused the UK of making unacceptable demands on financial services, saying that the kingdom is trying to secure “easy” access to the bloc’s single market. His comments indicate that no progress has been made in Brexit talks. Meanwhile, UK PM Johnson announced plans to revive the UK’s economy, pledging to solve social care issues and educational inequality, while supporting local companies.

Canada Gross Domestic Product fell 11.6% MoM in April, an unprecedented slump with activity contracting in all sectors.

European stocks closed higher, wrapping up their best quarterly performance in five years. Wall Street also closed with substantial gains, with the S&P posting its best quarterly advance in over 20 years.

Gold prices soared amid the extraordinary uncertainty mentioned by US Fed’s chief Powell. Spot gold reached a multi-year high of 1,785.96.

Crude oil prices were up, with WTI flirting with $40.00 a barrel, despite the US held a record-high level of commercial crude oil inventories, according to the EIA.

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EUR/USD hits two-day highs near 1.1820

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GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

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XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.