Forex Today: Fed’s day

FXStreet Team FXStreet

What you need to know on Wednesday, May 10th:

Caution was the name of the game, as we approach the US Federal Reserve decision. Stock traders booked profits, particularly during European trading hours, with most major indexes ending the day in the red. Wall Street, however, ended the day mixed and not far from its daily openings. The greenback attempted a recovery as equities fell, but resumed its decline in the American session.

FOMC Preview: What else can the Fed do?

The EUR/USD pair trades near its multi-month high at 1.1384, while the GBP/USD pair hovers around 1.2730 little changed from Monday’s closing levels.

The Japanese yen was the strongest, lead by falling equities and government bond yields. USD/JPY trades near a daily low of 107.61 as US Treasury yields edged lower for a second consecutive day.

Gold also benefited from the worsening mood, advancing for a second consecutive day, although holding within familiar levels.

Crude oil prices seesawed between gains and losses but finished the day unchanged, with WTI just below $39.00 a barrel.

Cryptocurrency Market News: A new form of token sales is gaining popularity, Ethereum could benefit

Author

FXStreet Team

FXStreet

EUR/USD faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.