Forex Today: Fed fuels stocks, pushes dollar down, jobless claims, Powell's speech eyed


Here is what you need to know on Thursday, April 8:

The market mood remains positive after the Fed's minutes pointed to ongoing support and ahead of Chair Powell's speech. Safety concerns about AstraZeneca's vaccines are weighing on the euro and the pound. Cryptocurrencies have dropped from their highs. US jobless claims are eyed. 

The FOMC Meeting Minutes echoed the bank's cautious approach to its policy despite acknowledging America's quick recovery. Tapering bond buys is unlikely to come soon, music to investors' ears. The S&P 500 extended its gains in response. Federal Reserve Chair Jerome Powell is set to speak later in the day. 

Taxes: Treasury Secretary Janet Yellen laid out a detailed program to raise corporate taxes to fund the administration's infrastructure spending plans. Republicans remain opposed to any hike. President Joe Biden is set to double America's commitment to lowering carbon emissions, setting it at 50% for 2030. 

Vaccines: Regulators in the UK and the EU have concluded that there is a link between AstraZeneca's jabs and rare cases of blood clots. The UK recommended refraining from using the firm's inoculations in the under 30s, while the bloc has yet to decided on a uniform response. The development may delay the recovery.

EUR/USD is off the 1.19 level amid these AZ concerns and awaits the European Central Bank's meeting minutes, which will likely echo the ECB's commitment to keeping long-term interest rates low. Phillip Lane, the bank's chief economists, said that favorable financing conditions must be maintained. 

US jobless claims are set to show applications falling back below 700,000 after topping that level last week. Nonfarm Payrolls and the JOLTs job opening figures pointed to a robust labor market.

See US Initial Jobless Claims Preview: Running on parallel tracks

Cryptocurrencies: Bitcoin is trading below $57,000 while Ethereum is struggling just above $2,000. Other digital assets are also below their highs. 

WTI Crude Oil is around $60 and Gold is hovering around $1,740, both little changed. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD retains weekly gains trades above 1.2000

EUR/USD peaked at 1.2079, now stable in the 1.2030 region. The shared currency holds on to recent gains despite renewed demand for its American rival.

EUR/USD News

GBP/USD retreats from 1.40 despite upbeat UK job figures

GBP/USD is extending its falls after retreating from 1.40 as the dollar edges higher. Earlier, the UK reported a drop in the unemployment rate to 4.9%, better than expected. The Claimant Count Change also beat estimates with 10.1K. 

GBP/USD News

XAU/USD clings to modest gains around $1,780 despite USD strength

The XAU/USD gained traction in the early American session and climbed to a daily high of $1,780. Although the greenback started to gather strength in the second half of the day, the pair stayed relatively resilient and was last seen rising 0.35% on the day at $1,778.

Gold News

WeWork and Venmo join the Bitcoin craze while prices consolidate

The announcement by WeWork that it will begin accepting payments in select cryptocurrencies, including Bitcoin, Ethereum, USD Coin, Paxos, and several others, is another sign of adoption and follows the decision by Tesla to do the same

Read more

Bank of Canada Preview: Dovish surprise to lift USD/CAD

The Bank of Canada is widely expected to keep its policy rate unchanged at 0.25% on Wednesday. However, the improving economic outlook and recent remarks from officials suggest that the BoC could become the first major central bank to lay out a roadmap out of the ultra-loose policy.

Read more

Forex MAJORS

Cryptocurrencies

Signatures