Forex Today: Nothing to cheer, dollar strong

Valeria Bednarik FXStreet

What you need to take care of on Friday, April 8:

The market’s mood remained sour as the focus remained on central banks’ hawkishness and tensions between Russia and the western world. The US has widened its actions against Moscow, hitting Russian Sberbank and Alfa Bank and prohibiting investment in the country by American companies. The EU, in the meantime, backed a Russian coal embargo, although without officially confirming it. The dollar remained strong.

On Thursday, Ukraine has presented a new agreement proposal, although it includes discussing the situation of Crimea and Donbass, something that Russia considers unacceptable.

The European Central Bank released the Accounts of its latest meeting. The document showed that policymakers believe the bond-buying program has now fulfilled its objective, and by ending it in the summer, it would clear the way for a 3Q rate hike.

Asian and European equities closed in the red, but Wall Street managed to recover some ground after two days of sharp losses. At the same time, government bond yields held at the upper end of the range, with the 10-year US Treasury note yielding 2.65% by the end of the day.

The EUR/USD pair trades around 1.0870, while GBP/USD stands at 1.3070. The dollar appreciated against its safe-haven rivals, with USD/CHF trading at 0.8340 and USD/JPY near 124.00.

Commodity-linked shed some ground, with AUD/USD down to 0.7470 and USD/CAD up to 1.2585.

Cardano price ready to breakout with the arrival of bonds on the Ethereum-killer’s blockchain

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.