Forex Today: Mild-optimism weighs on the greenback

FXStreet Team FXStreet

What you need to know on Monday, April 20^th:

The greenback softened at the end of the week amid a better market mood. The positive sentiment was triggered by US President Trump, who unveiled a three-phase approach to reopen the economy, although leaving the decision on governors. Also, studies with Remdesivir, an experimental drug, has shown some promising data on fighting COVID-19.
Equities soared on mounting hopes about economic openings, although the picture is unclear with some countries giving their first steps toward reactivating their economies and other extending the lockdown.
The EUR/USD pair finished the week at 1.0870, as the lack of a common policy to deal with the pandemic weighed on the shared currency.
GBP/USD settled sub-1.2500 as the UK leadership remains at doubt with PM Johnson still recovering from coronavirus. Brexit talks will resume this week as the kingdom has no plans to delay it beyond December this year. Meanwhile, the number of new coronavirus cases and the death toll continues to increase daily basis.
Safe-haven gold eased at the end of the week, with spot ending the week at around $1,680.00 a troy ounce.
Crude oil prices remained under selling pressure and reached fresh multi-year lows, amid persistent concerns about plummeting demand due to the coronavirus pandemic.
Bitcoin, Ethereum and Ripple: BTC/USD fights to close the week above $7,000

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD holds rebound near 0.6900 on US-China trade optimism

AUD/USD holds the rebound near 0.6900 in the Asian session on Monday. Mixed China's inflation data for October fails to provide any inspiration to the Chinese proxy, the Australian Dollar, but China's extension of the suspension of 24% tariffs on US goods and reduced US-Iran tensions help the Aussie pair cling to recovery gains.

USD/JPY retreat in sync with USD, appraches 158.00

USD/JPY is back in the red at the start of the week on Monday, eyeing the broad US Dollar retreat amid easing US-Iran tensions. Traders also resorting to profit-taking following the blockbuster US Nonfarm Payrolls data-led rally. US CPI report is next in focus.

Gold rises amid US-Iran peace deal hopes, softer US Dollar

Gold price recovers some lost ground above $4,020 during the early European trading hours on Monday. The prospects of diplomacy in the US-Iran conflict and weaker US Dollar (USD) boost the precious metal.

Solana: Persistent ETF outflows extend downside risk in SOL

Solana trades below $90 on Monday, ticking higher after over 3% losses below a long-term support trendline the previous day. SOL has been steadily declining over the last five weeks, aligning with five straight weekly outflows from Solana-focused Exchange-Traded Funds totaling over $150 million.

Economics week ahead

This week, attention turns to Tuesday’s CPI report, with no year-over-year readings available because of last October’s shutdown-related data gap. We expect headline and core inflation to clock 0.28% and 0.21% month-over-month, respectively. Softer core inflation would offer some relief after September’s upside surprise but should still leave our call for a December rate hike intact.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.