Forex Today: Dollar set to extend losses on Friday

FXStreet Team FXStreet

What you need to know on Friday, April 9:

The greenback fell against all of its major rivals but the pound. Dovish comments from Federal Reserve chief Powell, subdued government bond yields and poor US employment-related data weighed on the American currency.

The GBP/USD pair held at the lower end of its weekly range, extending its slide by a few pips to 1.3718 and settling in the 1.3740 area. Concerns surrounding the AstraZeneca vaccine keep weighing on sterling, as the EMA found a “rare link” between the jab and blood clots. Nevertheless, the UK has given at least one dose of a coronavirus vaccine to roughly 50% of the population, which brought sharply down the number of daily deaths and contagions.

The EUR/USD pair rallied up to 1.1927 retaining most of its gains by the end of the US session. Robert Holzmann, Austrian Central Bank Governor, said that the European Central Bank might be able to start reducing its bond purchases during the summer, providing support to the shared currency.

European and American shares posted modest intraday gains, providing some support to commodity-linked currencies. The Australian dollar found additional support in rising gold prices as spot advanced to its highest since March 1, ending the day around $ 1,755.00 a troy ounce.

XRP price headwinds are quickly being replaced by strong tailwinds

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FXStreet Team

FXStreet

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 holds above $5,000 as bears seem hesitant amid Fed rate cut bets

Gold edges lower at the start of a new week, though it defends the $5,000 psychological mark through the Asian session. The underlying bullish sentiment is seen acting as a headwind for the bullion. However, bets for more rate cuts by the Fed, bolstered by Friday's softer US CPI, keep the US Dollar bulls on the defensive and continue to support the non-yielding yellow metal as the focus now shifts to FOMC Minutes on Wednesday.

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

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.