Forex Today: Dollar set to extend gains

FXStreet Team FXStreet

What you need to know on Monday, March 22:

The American dollar finished the week with modest gains against most major rivals, up on Friday amid persistent yields’ strength. The yield on the benchmark 10-year Treasury note settled at 1.73%, near the multi-month peak of 1.75% achieved earlier in the week.

The EUR/USD pair hovers around 1.1900, while GBP/USD is around 1.3860, both suffering from coronavirus jitters. Several European countries have seen increases in the number of new contagions, and new restrictive measures have been announced as the EU struggles with vaccine shortage. The UK progresses in vaccine rollout, but Prime Minister Boris Johnson plans to extend the country’s lockdown law until next October. The Coronavirus Act emergency legislation will be discussed in the House of Commons on Thursday.

Commodity-related currencies were pressured by the poor performance of equities, although their declines against the greenback were limited. Gold surged ahead of the weekly close, settling at $1,744 a troy ounce, while crude oil prices also advanced marginally at the end of the week.

US Federal Reserve Chief Jerome Powell will testify before Congress on Tuesday and Wednesday, although after the latest Fed’s announcement, it seems unlikely that his words will have an impact on currencies.

Ethereum Price Prediction: ETH eyes a 40% bull rally

Author

FXStreet Team

FXStreet

EUR/USD clings to daily gains, still below 1.1900

EUR/USD manages to reverse two daily pullbacks in a row and advances modestly on Thursday, hovering around the 1.1880 zone amid the inconclusive price action around the US Dollar. Meanwhile, weekly Initial Claims rose more than expected last week, while attention is expected to shift to the upcoming US CPI data on Friday.

GBP/USD picks up pace, hits 1.3640

GBP/USD trades with modest gains around 1.3640 so far on Thursday. Indeed, Cable looks to leave behind the weakness seen in the first half of the week in a context of an equally erratic performance in the Greenback and disappoting UK data releases.

Gold stays offered below $5,100

Gold keeps the choppy trade well in place on Thursday, navigating the area below the $5,100 mark per troy ounce amid the lack of clear direction in the Greenback, declining US Treasury yields across the curve and caution ahead of Friday’s publication of US CPI.

LayerZero Price Forecast: ZRO steadies as markets digest Zero blockchain announcement

LayerZero (ZRO) trades above $2.00 at press time on Thursday, holding steady after a 17% rebound the previous day, which aligned with the public announcement of the Zero blockchain and Cathie Wood joining the advisory board.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.