Forex Today: Mood improves, dollar remains strong

FXStreet Team FXStreet

What you need to know on Friday, May 15th:

The American dollar remained the strongest, surging against most major rivals after US President Trump backed a stronger dollar. His words came just one day after Fed’s Powell dismissed negative rates in the US. The market ignored that the US unemployment claims last week were close to 3 million.

Asian and European indexes closed in the red, but Wall Street posted substantial gains, pushing commodity-linked currencies marginally higher against the greenback in the last hour of trading.

The shared currency and the pound, both weakened against their American rival. There was no particular catalyst but increased dollar’s demand.

Crude oil prices edged higher, with WTI settling around $28.00 a barrel, despite EIA’s outlook for oil demand declined to 91.2 b/d for this year. The Organism stressed coronavirus and a possible second wave are a major risk factor for oil demand.

Gold prices soared, with spot setting above $1,370.00 a troy ounce. Gains were backed by resurgent demand for safe-haven assets throughout the first half of the day. The metal held on to gains during US trading hours despite the market’s mood improved.

Cryptocurrency Market News: Bitcoin fails to hit 10K but could make another push

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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.