Forex Today: King Dollar keeps rallying

FXStreet Team FXStreet

Here is what you need to know on Wednesday, February 19th:

Risk aversion hit the markets hard this Tuesday. Apple issued a warning about sales profits amid the situation in China interrupting the company’s production and forcing it to close multiple stores. Equities plummeted as speculative interest run to safety.
The EUR/USD pair hit fresh multi-year lows below 1.0800 as the German ZEW Survey showed that Economic Sentiment in Germany and the EU plunged in February.
UK employment data was generally encouraging, although wages’ growth missed the market’s expectations. Chancellor Sunak confirmed the UK budget will be ready for March 11. GBP/USD hovered around 1.3000.
The USD/JPY pair fell just modestly but ended the day little changed, despite ruling risk aversion. Dismal Japanese GDP affected demand for the safe-haven currency.
AUD/USD nears a multi-year low at 0.6661 after a dovish RBA, hinting a rate cut amid coronavirus effects on the Chinese economy.
Gold prices soared, with the bright metal above $1,600 a troy ounce at the end of the US session. The metal hit 1,611.33 in January, an over six-year high.
Crude oil prices ended the day with modest gains despite ruling risk aversion.
Cryptocurrencies were on a wild run but finished the day with substantial gains. BTC/USD above 10,000.

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FXStreet Team

FXStreet

EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Japan's Takaichi secures historic victory in snap election

In Japan, Prime Minister Sanae Takaichi's coalition secured a supermajority in the lower house, winning 328 out of 465 seats following a rare winter snap election. This provides her with a strong mandate to advance her legislative agenda.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.