Forex Today: Market’s mood improved, UK PM Johnson in intensive care

FXStreet Team FXStreet

Here is what you need to know on Tuesday, April 7th:

The market mood was positive as there have been signs of flattening coronavirus-related curves in Spain, Italy, and New York. Despite the numbers are still far from encouraging, at least seems it the lockdown measures are working.
Equities soared, yields recovered, and the greenback lost momentum. Nevertheless, the dollar’s losses were limited and uneven throughout the FX board. The EUR/USD pair was unable to move away from the 1.0800 price zone.
The GBP/USD pair seesawed between gains and losses, to close the day in the red below 1.2250 amid bad news related to UK PM Boris Johnson’s health. Rumors crossed the wires ever since he was hospitalized on Sunday, although Downing Street denied his condition worsened, until late US afternoon when the news reported that he was taken into intensive care. Foreign Secretary Dominic Raab step up and that the government will follow Johnson’s plans.
The Japanese yen eased amid the better market mood, ending the day above the 109.00 threshold.
Commodity-linked currencies advanced against the greenback, although there were no fireworks. No critical level was broken, and in general, remained within familiar levels.
Crude oil prices eased after Friday’s rally, but the decline seemed a corrective slide.
Gold benefited the most from easing dollar’s demand, with the bright metal reaching a near one-month high of $ 1,658.85 a troy ounce.
Crypto Today: Bitcoin bulls building strong foundations above $7000

Author

FXStreet Team

FXStreet

EUR/USD remains below 1.1850 after US data

EUR/USD struggles to gain traction and trades in a narrow range below 1.1850 on Wednesday. The US Dollar stays resilient against its rivals following the better-than-expected Durable Goods Orders and housing data, limiting the pair's upside ahead of FOMC Minutes.

GBP/USD stays in narrow channel above 1.3550 ahead of FOMC Minutes

GBP/USD holds its ground following Tuesday's slide and moves sideways above 1.3550 midweek. Although the data from the UK confirmed that inflation cooled in January, the positive shift seen in market mood helps the pair keep its footing as investors wait for the Fed to publish the minnutes of the January policy meeting.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.