Forex Today: Dollar under pressure but caution persists

FXStreet Team FXStreet

Here is what you need to know on Thursday, March 26^th:

Wall Street rallied for a second consecutive day, as US Senators agreed on a $2 trillion relief package that would likely be voted on Friday. US indexes, however, retreated ahead of the close. The DJIA and the S&P closed in the green. US Treasury yields posted modest intraday advances.
The coronavirus pandemic continues to expand. The total number of cases is roughly 490,000, while the death toll increased to 20,800. The largest increase in cases is taking place in Europe and the US.
The American dollar was the worst performer, with EUR/USD near 1.1900 early Thursday and GBP/USD trading around 1.1900.
The USD/JPY pair edged marginally lower as demand for safe-haven assets was limited. Gold eased with spot trading around $1,610.
Crude oil prices spent the day consolidating. Late US session news made the rounds about the US and Saudi Arabia holding talks to maintain the stability of global energy markets.
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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.

GBP/USD weakens to two-week lows near 1.3520

GBP/USD trades on the back foot, returning to the low 1.3500s, or two-week troughs, on Tuesday. Cable’s bearish price action follows decent gains in the Greenback at the time when investors assess latest US data releases and the persistent uncertainty in the US-Iran crisis.

EUR/USD remains offered; breaks below 1.1600

EUR/USD now accelerates its daily correction, breaching below the key 1.1600 support level on Tuesday. The pair’s daily correction comes on the back of a decent bounce in the US Dollar despite disappointing US data releases and amid persistent geopolitical concerns.

No reaction from Gold; still targets $4,300

Gold extends Monday’s pessimism and slipped back to nearly three-week lows just above the $4,300 mark per troy ounce on Tuesday. The US Dollar’s rebound couple with rising US Treasury yields weigh on the precious metal despite tensions in the Middle East appear far from abated.

Crypto Today: Bitcoin, Ethereum, XRP struggle to extend gains despite ETF inflows

Bitcoin stalls while holding above $78,000 support as ETF inflows return. Ethereum takes a breather around $2,450 amid sustained institutional support. XRP remains pressured as the 200-day EMA provides immediate support.

Global bond market sell off haunts markets

Global sovereign bonds are selling off as we start a new month. The UK is, unsurprisingly, taking the biggest hit. Two and 10-year yields rose by 10 basis points at one point on Tuesday, and are currently higher by 7 and 8bps respectively.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.