Forex Today: Markets mixed amid falling yields, cryptos lick their wounds, virus news eyed

Yohay Elam FXStreet

Here is what you need to know on Monday, April 19:

Markets have kicked off the new week in a mixed mood, as US Treasury yields remain depressed despite upbeat US data. Cryptocurrencies are attempting recovery after a weekend crash. Rising global covid cases and advancing vaccination efforts are eyed.

Mixed markets: Asian stocks and US futures are stable after closing last week significantly higher. Returns on US ten-year bonds remain below 1.60%, somewhat helping stocks.

Cryptocurrencies have been attempting a recovery after collapsing over the weekend. Bitcoin is trading at around $57,000 after dipping below $52,000 on Sunday and nearing $65,000 last week. Ethereum and XRP are mimicking BTC's moves while Dogecoin stands out with rapid gains. The sharp moves come after Coinbase, one of the world's largest digital asset exchanges, listed on Wall Street.

EUR/USD is trading below 1.20 as political uncertainty in Germany's ruling CDU party persists while more shots are getting into arms. The European Central Bank's rate decision is awaited on Thursday.

GBP/USD is clinging to gains around 1.3850 as nearly half the population has received at least one inoculation. Gold has been holding onto its gains, benefiting from low US yields with XAU/USD hovering above $1,770.

The US reached 40% of its population with one jab, as all Americans are now offered the vaccine, but COVID-19 cases continue rising in several states. The reopening boosted economic activity as seen in March's 9.8% leap in retail sales and a sharp drop in jobless claims to 576,000.

On the other hand, global coronavirus cases continue rising, hitting new records above five million per week. India is among the countries suffering a sharp increase.

In China, Huarong, a troubled asset manager, has paid a large bond debt, alleviating worries that were circulating in recent weeks. The world's second-largest economy grew at a rapid annual pace in the first quarter this year but industrial output expansion somewhat disappointed.

The pause that refreshes: Are currency markets hesitant to run with US data?

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold defends bids as US-Iran war continues to fuel safe-haven flows

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar keeps the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.