Forex Today: Dollar slides, Bitcoin recovers as a busy week kicks off

Yohay Elam FXStreet

Here is what you need to know on Monday, April 26:

Markets are cautiously optimistic and the safe-haven dollar is down ahead of a busy week. US Durable Goods Orders will likely cheer investors while concerns about India's severe covid dampens the mood. Cryptocurrencies bounced after diving over the weekend.

Optimism about the global economic recovery has taken over markets with S&P 500 futures rising and the greenback falling amid the risk-on mood and despite an increase in US 10-year yields. Higher returns on US debt limit gold's gains.

India's COVID-19 cases continue breaking daily records and many worries that deaths are undercounted. Weaker demand from the Asian giant weighed on prospects for global growth last week. The US, the UK and other countries pledged to send support to the country.

EUR/USD has topped 1.21 amid the upbeat mood and falling coronavirus cases in Europe. Italy and France are loosening several restrictions on their citizens. The German IFO Business Climate for April s set to edge higher.

GBP/USD is flirting with the 1.39 level as Prime Minister Boris Johnson is under pressure for dealing with the pandemic and despite the fact that the UK reached over 50% of its population with vaccines. Commodity currencies are moving up, partially due to an increase in copper prices, in expectations of stronger global demand.

Economists expect US Durable Goods Orders for March to show an increase after falling in February. The figures feed into Thursday's growth figures and may shape expectations ahead of Wednesday's Federal Reserve decision. The Fed will likely acknowledge the improvement but dismiss rising inflation as transitory.

Bitcoin is trading above $52,000 after diving to around $47,000 while XRP is back above $1 after slipping below that level. Volatility tends to increase over the weekend.

More Dollar snaps back on good data, FOMC next week

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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