Forex Today: Fears cooled but remain in the background

Valeria Bednarik FXStreet

What you need to know on Wednesday, July 21:

The dismal market mood extended through the first half of Tuesday, improving a bit during US trading hours. Wall Street recovered, as the three major indexes trimmed a good bunch of their Monday’s losses. Nevertheless, the greenback remained strong and managed to post higher highs for the week against most major rivals.

As it happened lately, the EUR was resilient to broad dollar’s demand, while the pound and the aussie were the worst performers. The first is being affected by Brexit jitters and covid-related headlines, while the latter suffered from Australian lockdowns hurting economic progress.

As crude oil prices stabilized, the USD/CAD edged lower. WTI settled at $ 67.40 a barrel, helping the pair to settle at around 1.2680 after topping 1.2800 earlier in the week.

Concerns about the spread of the Delta variant and heating US inflation are still the main themes and could trigger another run to safety.

US Treasury yields dipped at the beginning of the day, recovering ahead of the close to end the day in the green. The yield on the 10-year Treasury note plunged to 1.126% but closed the day at 1.20%.

Gold prices surged intraday, flirting with 1,825 before pulling back and ending the day in the red at around $1,808.00 a troy ounce.

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD weakens to four-week lows near 1.1750

EUR/USD’s selling pressure is gathering pace now, approaching the area of multi-week troughs in the mid-1.1700s on Thursday. The pair’s intense decline comes on the back of another day of solid gains in the US Dollar, particulalry exacerbated following firm prints from the weekly US labour market.

GBP/USD drops further, hovers around 1.3460

In line with the rest of its risk-linked peers, GBP/USD faces increasing selling pressure and recedes toward the 1.3460 region, or four-week lows, on Thursday. Cable’s persistent pullback comes in response to the continuation of the recovery in the Greenback amid a solid US data and a divided FOMC when it comes to the Fed’s rate path.

Gold clings to daily gains near $5,000

Gold struggles for direction and clings to its daily gains around the key $5,000 mark per troy ounce on Thursday. The precious metal sticks to the bid bias amid reignited geopolitical tensions in the Middle East and despite marked gains in the US Dollar and rising US Treasury yields across the curve.

Ripple slips toward $1.40 despite SG-FORGE tapping protocol for EUR CoinVertible

XRP extends its decline, nearing $1.40 support, as risk appetite fades in the broader market. SG-FORGE’s EUR CoinVertible launches on the XRP Ledger, leveraging the blockchain’s scalability, speed, security, and decentralization.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.