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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EUR/USD flat lines around 1.1900; looks to US NFP report for fresh directional impetus

The EUR/USD pair is seen oscillating in a narrow trading band around the 1.1900 mark during the Asian session on Wednesday as traders opt to wait for the release of US monthly employment details before placing fresh directional bets.

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 awaits US Nonfarm Payrolls data for a sustained upside

Gold remains capped below $5,100 early Wednesday, gathering pace for the US labor data. The US Dollar licks its wounds amid persistent Japanese Yen strength and potential downside risks to the US jobs report. Gold holds above $5,000 amid bullish daily RSI, with eyes on 61.8% Fibo resistance at $5,141.

Ethereum: Whales buy the dip amid rising short bets

Following one of Ethereum's largest weekly drawdowns, whales are slowly returning to action alongside a drop in retail selling pressure. After slightly selling into the decline at the start of the month, whales or wallets with a balance of 10K-100K ETH began buying the dip last Wednesday as prices crashed further.

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.