Forex Today: Dollar gives up despite risk-off

Valeria Bednarik FXStreet

What you need to take care of on Friday, May 20:

Despite persistent risk-aversion, the American currency changed course on Thursday and fell across the FX board. Fears gyrated around inflationary pressures and slowing economic growth.

Stocks markets remained under pressure, with most Asian and European indexes closing in the red, although off their intraday lows. Wall Street remained under pressure, although losses were limited.

Demand for safety continued, with government bonds appreciating and yields retreating.

Turkish President Recep Tayyip Erdogan said he would oppose Finland and Sweden joining NATO, while US President Joe Biden stood at the other end of the line, saying his country would fully support it. Erdogan claims the Nordic countries serve as a refuge for terrorists of the Kurdistan Workers' Party,

Meanwhile, the UK and the EU embarked on new Brexit tensions. As the first try to modify rules agreed in the Northern Ireland Protocol, the EU ambassador to the UK said the treaty is not open for new negotiations.

The EUR/USD pair trades around 1.0590 after briefly surpassing the 1.0600 threshold. The GBP/USD holds a handful of pips below the 1.2500 threshold.

The Australian dollar was among the best performers despite tepid Australian employment data. AUD/USD holds around 0.7060, its highest for the week. The USD/CAD pair ticked lower and trades around 1.2810.

The Swiss Franc soared, with USD/CHF now trading at 0.9716, while USD/JPY is down to 127.70.

Gold neared $1,950 a troy ounce, now trading at $1,842. Crude oil prices were also up, with WTI now changing hands at $108.95 a barrel.

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto bloodbath hasn’t even started yet

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 climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.