Forex Today: Dollar smashed by risk appetite

FXStreet Team FXStreet

What you need to know on Tuesday, May 19th:

The greenback was smashed by risk appetite, ending the day lower against most major rivals but the yen. Equities rallied ever since the day started, underpinned throughout the first half of the day by comments from BOE’s Haldane and Fed’s Powell, both leaving doors opened for additional monetary stimulus.

Moderna, a biotech firm, announced encouraging results on an early-stage coronavirus vaccine trial. The next and final stage of the test could be completed by July. Despite the sample reported was quite small, hopes soared. Wall Street closed with substantial gains, with the DJIA roughly 960 points up, the Nasdaq adding 2.6% and the S&P ending the day up over 3.3%. US Treasury yields also advanced with the news.

The EUR/USD pair settled above 1.0900 as Germany and France have proposed an EU recovery fund of E500 billion. According to the German’s Chancellor Merkel, the fund should give grants, no loans to member states, while France’s Macron said it would focus on help countries or regions that have been particularly affected by the coronavirus outbreak.

The Pound also benefited from risk-appetite, although GBP/USD held around 1.2200, with the upside capped by Brexit jitters.

Commodity-linked currencies advanced on dollar’s weakness, but also on firmer crude oil prices, on reports indicating that Chinese oil demand is almost back to pre-virus levels.

Gold prices reached fresh seven and a half year highs, with spot reaching 1,765.19, on the back of easy money, but plunged to 1,730 as risk-appetite took over the financial world.

Cryptocurrency Market News: Bitcoin break above $10,000 imminent even as Ethereum longs surge

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FXStreet Team

FXStreet

EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.