Forex Today: Dollar suffers from upbeat US data

FXStreet Team FXStreet

What you need to know on Wednesday, April 14:

Markets seesawed between risk-aversion and risk-appetite. The sentiment was sour ahead of Wall Street’s opening, following news that the US FDA paused the application of the Johnson & Johnson coronavirus vaccine due to at least six cases of severe blood clots related to the shot. Stocks plummeted, providing temporary support to the greenback.

Financial markets changed course after upbeat US inflation figures. The US March Consumer Price Index jumped to 2.6% YoY, while the core reading hit 1.6%, spurring risk appetite. Wall Street trimmed intraday losses, resulting and the dollar edged lower.

US Treasury yields also came under pressure, with the yield on the 10-year note down to 1.62%.

In Europe, the German ZEW Survey showed that the Economic Sentiment contracted in April, but the shared currency got to advance to a fresh 3-week high against the greenback.

In the UK, the February Goods Trade Balance posted a deficit of £-16.442 billion, worse than anticipated, while the monthly Gross Domestic Product printed at 0.4% for February, better than the previous -2.2% but worse than the 0.6% expected. Industrial Production in the country fell by 3.5% YoY, better than the -4.4% expected, while Manufacturing Production decreased by 4.2% YoY vs the -5.1% anticipated. The pound managed to post a modest intraday advance.

Bank of England Chief Economist Andy Haldane announced he would quit his position and step down from the Monetary Policy Committee after June's meeting to become the Chief Executive of the Royal Society for Arts, Manufactures and Commerce.

The Organization of the Petroleum Exporting Countries raised its forecast for global oil demand growth in 2021 to 5.95 million barrels per day from 5.89 million previously. Crude oil prices were marginally higher, with WTI ending the day at $60.00 a barrel.

Gold recovered the lost ground, with spot ending the day at $ 1,745 a troy ounce, its highest for the week.

Dogecoin price jumps 20% again as investment company buys $60 million worth of Dogecoin Cash

Author

FXStreet Team

FXStreet

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.