Forex Today: Mild optimism backed the greenback

FXStreet Team FXStreet

Here is what you need to know on Tuesday, August 11:

The greenback appreciated against most major rivals, with EUR, AUD and GOLD its weakest rivals. The Pound was resilient, posting a modest intraday advance against its American rival.

Dollar’s strength could be attributed to weekend news indicating that US President Trump signed four executive orders on fiscal aid. Speculative interest believes it would force Congress to rush into a deal.

In the UK, PM Boris Johnson said that the government wouldn’t hesitate to reimpose lockdown measures if needed. It’s spokesman later announced that they will set out at the end of the week whether to go ahead with reopenings, adding that they pretend to act timely “on quarantine if data shows we need to.” In the trade front, there were no news related to the EU, although news headlines indicate that a future trade deal with Japan cooled.

Equities traded mixed worldwide, without a clear directional momentum, indicating a cautious stance from investors. Treasury yields, however, edged higher.

Gold prices kept retreating from record highs, with spot gold ending the day around $2,025 a troy ounce. Crude oil prices remain stable, with WTI settling at $42.00 a barrel.

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EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.