Forex Today: Long Live King Dollar

FXStreet Team FXStreet

Here is what you need to know on Thursday, March 19th:

Demand for the greenback was out of control, with several other currencies collapsing to multi-year lows. The coronavirus keeps spreading with over 214,000 cases worldwide, and cases and deaths growing exponentially in Europe, also spreading in the southern hemisphere where summer should mean less flu-related illness.
Equities worldwide were a sea of red, with the DJIA losing 6.3% and the S&P shedding 5.18%. Trading in both was halted mid-US session. Surprisingly, US Treasury yields closed in the green, with the yield on the benchmark 10-year note settling at 1.19%.
The Pound and commodity-linked currencies were the worst performers. GBP/USD collapsed to 1.1440, a level that was last seen in 1985, amid the UK government´s soft approach to the crisis. The number of deaths in the UK doubled in the last 24 hours, and the government finally announced schools will close this Friday. No other measures were announced.
The USD/CAD soared to 1.4650 as crude oil prices plunged. WTI traded as low as $20.00 a barrel amid plummeting demand on a paralyzed world.
Gold eases amid dollar’s strength, settling below 1,500.00
The US Senate passed the House's coronavirus relief bill, as expected.
Crypto Today: Bitcoin $5000 remains a major risk
RBA and Australian Employment Preview: Useless rate cut to do no good to Aussie

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FXStreet Team

FXStreet

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.