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

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FXStreet

EUR/USD flat lines below 1.1900; divergent Fed-ECB expectations offer support

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GBP/USD slips heading into the Thursday trading window

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Bitcoin holds steady despite strong US labour market

Bitcoin briefly bounced from $66,000 to above $68,000 but slightly reversed those gains following Wednesday's US January jobs report. The top crypto is hovering around $67,000, down 2% over the past 24 hours as of writing on Wednesday.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

XRP sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.