|

Forex Today: Dollar week as mild-optimism prevails

Here is what you need to know on Monday, April 13th:

  • Trading was dull on Friday and will remain so this Monday, amid Easter holidays being celebrated in most major economies. The American dollar closed the week with losses against most major rivals, as investors moved into stocks following the Fed’s latest loan plan of $2.3 trillion.
  • EU finance ministers agreed on Friday on a €540 billion stimulus relief package via the European Stability Mechanism, meant to support member stated.  
  • On Sunday, news came from the UK that PM Boris Johnson has been discharged from hospital, and will continue his recovery at Chequers.
  •  Stop gold neared the multi-year high set this year, while gold futures surged to a seven-and-a-half-year high, as demand for the safe-haven metal continues.
  • Crude oil prices seesawed between gains and losses throughout the week, ending it in the red after plummeting on Thursday. The OPEC+ alongside other oil producers have been discussing an output cut. G20 energy ministers had a meeting that extended into the weekend, as Mexico is still out of the deal. The meetings ended without clear references to future actions.
  • The US has become the epicentre of the coronavirus pandemic, with over 530,000 contagions and the death toll above 20,000, surpassing that of Italy.  The crisis in the American country continues to steepen. In Italy and Spain, the curves seem to be flattening, although the numbers are still outrageous, while up in other European countries. The economic comeback si not yet at sight.
  • Bitcoin, Ethereum, Ripple: A consolidative phase before the bears return

Author

FXStreet Team

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.

More from FXStreet Team
Share:

Editor's Picks

AUD/USD holds rebound near 0.6900 on US-China trade optimism

AUD/USD holds the rebound near 0.6900 in the Asian session on Monday. Mixed China's inflation data for October fails to provide any inspiration to the Chinese proxy, the Australian Dollar, but China's extension of the suspension of 24% tariffs on US goods and reduced US-Iran tensions help the Aussie pair cling to recovery gains.

USD/JPY retreat in sync with USD, appraches 158.00

USD/JPY is back in the red at the start of the week on Monday, eyeing the broad US Dollar retreat amid easing US-Iran tensions. Traders also resorting to profit-taking following the blockbuster US Nonfarm Payrolls data-led rally. US CPI report is next in focus.

Gold bounces back above $4,100 amid easing Iran risks

Gold price recovers some lost ground and regains $4,100 during the Asian trading hours on Monday. Speculations that incoming Democrats would push to end the Iran war lift the yellow metal amid latest comments from US President Donald Trump that new strikes on Iran are unlikely if talks progress.



Top 3 Price Predictions: Bears in control, with next support at BTC $70,000, ETH around $2,000 and XRP near $1
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) bears remain in control, with the top three cryptocurrencies correcting over 4%, 6% and 10%, respectively, last week and marking their fifth consecutive weeks of losses. BTC trades around $75,530 on Monday after closing below key Exponential Moving Averages (EMAs), leaving the $70,000 level as its next major support.
AI selloff: What bonds and credit markets reveal
The recent selloff in US technology stocks has left investors with a difficult question. Are we simply looking at a correction after months of strong performance, or is the market starting to reflect deeper problems in the economy? The Nasdaq 100 has lost as much as 16.3% from its record high, while the Philadelphia Semiconductor Index has experienced an even sharper decline.
US Dollar breaks below 101.50 as Democrats sweep Congress
The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.