Forex Today: Dollar jumps, gold melts, Bitcoin clings to $50K ahead of US Retail Sales, Fed Minutes


Here is what you need to know on Wednesday, February 17:

US bond yields continue rising and the dollar is finally responding with a rise. Stock markets are mostly shrugging off the "reflation trade" yet gold is on the back foot. Bitcoin holds above $50,000 and oil continues higher amid power cuts in Texas. US Retail Sales and the Federal Reserve's meeting minutes stand out.

US stimulus: President Joe Biden is on the road, trying to promote his proposed $1.9 trillion coronavirus relief package to the public while Democrats continue advancing the bill in Congress. The prospects of massive government spending and potential inflation have pushed investors away from bonds and the resulting higher yields are supporting the dollar. 

EUR/USD has dipped under 1.21 despite optimism ahead of Mario Draghi's first speech as Italy's Prime Minister. GBP/USD has dropped under 1.39, with sterling unable to benefit from Britain's successful vaccination campaign.

Higher returns on US debt mean that yieldless gold is on the back foot with XAU/USD slipped under $1,800. On the other hand, oil prices remain elevated as a storm in Texas has cut US crude output by a third and as residents suffer rolling blackouts. 

Stock markets have slowed their gains but have yet to turn south. Some focus on US stimulus as a growth engine and higher yields only a side effect. US retail sales figures for January are set to show an increase in spending after two months of declines. 

See US Retail Sales January Preview: Credit markets foresee consumer recovery

The Federal Reserve's meeting minutes are due out late in the day and they will likely show that most members are dismissing any inflationary pressures as transitory or even a blessed phenomenon. 

See US FOMC Minutes January 26-27 Preview: Will the Fed cap rates?

Bitcoin has been extending its gains after peeking above $50,000 on Tuesday. Other cryptocurrencies are more volatile. Dogecoin, touted by Elong Musk, is on the back foot. 

US Stocks Weekly Forecast: Records are there to be broken

Speeches by Fed officials and Canadian Consumer Price Index statistics are also scheduled for Wednesday. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 1.0400 as focus shifts to US data

EUR/USD stays below 1.0400 as focus shifts to US data

EUR/USD clings to modest daily gains and trades at around 1.0350. Eurostat reported on Wednesday annual Core HICP remained steady at 5% in the Eurozone in November as expected. Investors await US ADP employment data and Powell's speech.

EUR/USD News

GBP/USD steadies near 1.2000 ahead of US data

GBP/USD steadies near 1.2000 ahead of US data

GBP/USD managed to stage a rebound from the 1.1950 area but lost its bullish momentum near 1.2000 as investors await the ADP private sector employment report from the US. FOMC Chairman Jerome Powell will deliver a speech on the economy and inflation later.

GBPUSD News

Gold clings to gains near $1,760, eyes on Powell

Gold clings to gains near $1,760, eyes on Powell

Gold price trades in positive territory at around $1,760 as the US Dollar struggles to find demand. Ahead of the ADP employment data from the US and Fed Chari Powell's speech, the 10-year US Treasury bond yield holds steady above 3.7%. 

Gold News

Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next

Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next

Bitcoin price action has spiked 5% over the last 24 hours, hinting at the start of an optimistic scenario. Previous publications have already explored why BTC is ready for a bear market rally from both short-term and long-term outlooks.

Read more

ADP Jobs Preview: Markets set to find more reasons to sell the Dollar, big beat needed to boost it Premium

ADP Jobs Preview: Markets set to find more reasons to sell the Dollar, big beat needed to boost it

ADP's jobs report has finally come in line with the official NFP report. It took a hiatus and a change in formula to make that happen, but what matters is that this release finally matters. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures