Forex Today: Fear returned, the dollar won

FXStreet Team FXStreet

Here is what you need to know on Wednesday, July 8:

The coronavirus spread was once again the main and only market motor. It started with the Australian government announcing a six weeks lockdown in all Metropolitan Melbourne and other surrounding cities amid a new outbreak with 191 new COVID-19 CASES reported.

Brazil’s President, Jair Bolsonaro, has tested positive for coronavirus. Bolsonaro has refused to use lockdown as a toll to battle COVID-19, calling it a “little flue.” Brazil has reported over 1.8 million cases and over 66K deaths, the second most compromised country behind the US.

WHO leader, Dr. Tedros, announced he will travel to China on the weekend to prepare a study on the origins of the virus. He added that the pandemic is in full expansion, and the world has not yet left the worst behind.

Equities closed in the red worldwide, although the Nasdaq Composite hit an all-time high before turning red.

The dollar seesawed between gains and losses against its major rivals, ending the day mixed. EUR/USD trades around 1.1270, GBP/USD extended its advance to 1.2590, ignoring the lack of progress in Brexit talks.

Gold soared to $1,797.50 a troy ounce a new multi-year high amid the broad dollar’s weakness combined with the risk-averse mood.

Crude oil prices eased by the end of the day, dragged lower by Wall Street. WTI closed the day unchanged a few cents above $40.00 a barrel.

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FXStreet Team

FXStreet

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.