Forex today: dollar mixed despite higher yields

Ross J Burland FXStreet

Forex today was mixed for the dollar while the DXY traded between 98.695 - 99.215 and currently -0.27% on the day so far.

Despite US 10 years recovering above the 2.30% psychological mark, moving between a range of 2.2659% - 2.3412% and up 2.92% on the day, the dollar was unable to fend off the euro, sterling, cad bulls and was only modestly higher than the worst performer of late being the kiwi.

The euro is up 0.63% while trading in a range between 1.0851 - 1.0950, sterling was up 0.29% and trading between 1.2775 - 1.2846 on the day. The Canadia dollar is down 0.48% vs the dollar but made advances from the highs of 1.3627 down to 1.3493 currently. The antipodeans were holding their own vs the greenback but to a lesser extent and in the consolidation of the recent supply.

The fundamentals behind these moves were around the ECB being expected to remove some of the downside risks associated with the Fench elections and a potentially less dovish outcome boosted the euro. Then, we look to Trump. Trump is in focus this week as he approaches the end of his first 100 days and thus keen to being his promised policies to fruition. However, the tariffs imposed on Canadian lumber and question marks over other global trade deals is harming the commodity currencies such as the CAD.

The day ahead

For the day ahead, we look to Aussie CPI as the next key event. Most market participants expect a pickup in underlying inflation from 1.55% to 1.85%/yr. "We are a pip higher but shouldn’t be market moving since the February RBA projections assumed 2%/yr by mid-year," explained analysts at TD Securities.

Key US events:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.