Forex Today: Market cautious ahead of US data

FXStreet Team FXStreet

What you need to know on Friday, May 5th:

The ECB expanded its PEPP by €600 billion and extended its stimulus scheme until June 2021 or as long as needed. Growth and inflation forecasts for this year and the next ones have been downgraded. President Lagarde said she expects the economy to bounce back in Q3. The announcement helped EUR/USD extend its gains beyond 1.1300.

The German Merkel's coalition reached a deal on a €130 billion stimulus package, which consists of tax cuts and infrastructure spending.

The greenback remained under pressure despite the market mood turned sour. Equities closed in the red in Europe, while US indexes closed mixed around their opening levels. US employment-related data came in below expected, somehow anticipating a dismal US Nonfarm Payroll report this Friday.

GBP/USD reached fresh highs above 1.2600, despite bad news in the Brexit front. After three days of talks, both parts recognized that they remain far apart on core topics, with no agreement on their future trade relationship. German’s ambassador in Brussels, Michael Clauss, said that EU leaders would intervene in the negotiations in the autumn in an attempt to clinch a deal by mid-October.

US Treasury yields advanced, with the yield on the benchmark 10-year note hitting 0.82%, underpinning USD/JPY which settled above 109.00.

Crude oil prices posted a modest intraday advance, as investors remained cautious amid uncertainty surrounding OPEC+ agreement on additional output cuts. Gold prices recovered after Thursday’s sharp slide. Spot settled around 1,715.

Cryptocurrency Market News: Bitcoin is stuttering toward 10K and much more....

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FXStreet Team

FXStreet

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.