Forex Today: Dollar sinks on chances of negative fed funds rates

FXStreet Team FXStreet

What you need to know on Friday, May 8th:

The US will release the April Nonfarm Payroll report this Friday, which may result in majors holding on to ranges throughout the previous sessions.

The greenback started the day with a strong footing, but ended up losing ground against all of its major rivals amid mounting speculation fed funds rate would fall into negative territory early 2021. Yields gave un Thursday’s gains and returned to the lower end of their weekly range. Wall Street closing in the green added pressure on the dollar.

The common currency was once again the worst performer. EUR/USD enters Friday hovering around the 1.0800 level.

The BOE left its monetary policy unchanged, although 2 MPC members voted to increase the APP. Governor Bailey opened doors for further stimulus.GBP/USD ended the day little changed on the upside, mostly due to the broad dollar’s weakness.

Gold soared to $1,720, amid plummeting US Treasury yields. The yield on the benchmark 10-year Treasury note fell 10 basis points, amid dismal US employment data.

Crude oil prices trimmed intraday gains ahead of the close after reaching fresh weekly highs. The early advance came as a result of increasing demand from China, boosting hopes demand will continue to increase.

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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