Forex Today: Dollar keeps falling as Wall Street flirts with record highs

FXStreet Team FXStreet

What you need to know on Tuesday, May 9th:

It was a quiet start to the week, amid a holiday in Australia and a scarce macroeconomic calendar. European equities spent the day struggling around their opening levels, providing little clues. Things changed in the US session as Wall Street rallied, with the NASDAQ reaching an all-time high. The greenback came under selling pressure even against high-yielding rivals. EUR/USD was a lager, spending the day hovering around the 1.1300 level.

The GBP/USD pair traded as low as 1.2667, undermined by the lack of progress in EU-UK post-Brexit talks, but ended the day in the 1.2730 region, reaching fresh three-month highs amid prevalent dollar’s weakness.

The USD/JPY lost over 100 pips, trimming most of the previous week gains, without a clear catalyst. US Treasury yields eased from their intraday peaks but held far from their recent lows. The 10-year Treasury note settled at 0.87%.

The Trump administration announced it’s planning on signing the Uyghur human rights bill that condemns China's government for detention centers and the persecution of Muslims. The decision will clearly increase tensions between the two countries.

Gold recovered on the back of the dollar’s weakness, reaching the 1,700 threshold at the end of the day. Crude oil prices, on the other hand, edged lower. Nevertheless, the AUD and the CAD reached fresh multi-week highs against the greenback.

Cryptocurrency Market Update: Bitcoin and the rest of cryptos continue trading sideways

Author

FXStreet Team

FXStreet

EUR/USD remains depressed below mid-1.1800s; downside potential seems limited

The EUR/USD pair attracts some sellers for the second consecutive day on Tuesday and hovers below mid-1.1800s amid a relatively quiet trading action during the Asian session. The broader fundamental backdrop, however, warrants some caution for bearish traders before positioning for deeper losses.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold declines as trading volumes remain subdued due to holidays in China

Gold price extends its losses for the second successive session, trading around $4,930 per troy ounce during the Asian hours on Tuesday. Gold price is trading nearly 0.7% lower at the time of writing as trading volumes stayed thin due to market holidays across China, Hong Kong, and other parts of Asia.

Top Crypto Gainers: Stable, MemeCore and Nexo rally test critical resistance levels

Stable, MemeCore, and Nexo are among the leading gainers in the crypto market over the last 24 hours, while Bitcoin remains below $70,000, suggesting renewed interest in altcoins among investors.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.