Forex Today: EUR/USD falls toward Macron gap, Pound enjoys Javid jump, US consumer, coronavirus eyed

Yohay Elam FXStreet

Here is what you need to know on Friday, February 14:

EUR/USD is extending its slide, trading closer to the "Macron Gap" from April 2017. Investors see the glass half empty as recent data have been disappointing. Moreover and contrary to the US and the UK, Germany and other countries are holding back on spending. The largest economy in the eurozone is around stall-speed.

GBP/USD remains on high ground after Prime Minister Boris Johnson forced the now-former Chancellor of the Exchequer Sajid Javid out. Rishi Sunak, the new treasurer, is set to work more closely with No. 10 and open the door fiscal spending, especially on infrastructure. Government stimulus relieves the Bank of England from the pressure to cut rates, thus pushing the pound higher. The budget planned for March 11 may be delayed.

See GBP/USD has more room to run after the reshuffle rally

Coronavirus: The number of cases nears 63,000 on the second day after authorities in China changed its counting methodology, adding CT scans in addition to lab tests. Larry Kudlow, a senior adviser at the White House, has expressed disappointment from Beijing's level of transparency on the respiratory disease.

Markets temporarily dipped on Thursday amid a leap in cases but recovered swiftly. Nevertheless, the safe-haven yen and gold have retained some of their safe-haven gains.

The US consumer is in focus later today. Retail Sales figures for January are set to show another month of growth in sales. Later, the University of Michigan's Consumer Sentiment Index for February is also forecast to point to high confidence. On Thursday, inflation surprised with the Core Consumer Price Index holding at 2.3% yearly.

Retail Sales Preview: Jobs and consumption are the core of the US economy
Consumer Sentiment Preview: Looking in the labor market mirror

Oil prices have stabilized with WTI topping $51 despite ongoing tensions within the OPEC+ group.

Cryptocurrencies are on the back foot after challenging new highs. Bitcoin is trading closer to $10,000.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.