Forex Today: Powell smashes the greenback

FXStreet Team FXStreet

What you need to know on Thursday, April 29:

The American dollar fell after the US Federal Reserve announced its latest monetary policy decision. As widely anticipated, the central bank decided to maintain rates on hold, and pledged to maintain QE until “further substantial progress” is achieved on employment and inflation. Chief Powell repeated that it is too early to think about tapering.

US stocks closed in the red, although the S&P posted an intraday record high. Loses were uneven, with the DJIA being the worst performers.

US government bond yields advanced at the beginning of the day but closed with modest losses. The yield on the 10-year US Treasury note peaked at 1.66%, to finish the day at 1.60%.

The EU parliament gave a final vote to the Brexit trade and security deal, with 660 votes in favor and just 5 against it. The now ratified deal provides the framework for London's new relationship with the 27-member union, despite tensions between both parts persist. The UK has not fully implemented some of the agreements, while the dismal mood is also related to the delayed provision of AstraZeneca vaccines to the Union.

The EUR/USD pair reached a fresh April high of 1.2134, holding nearby. GBP/USD topped 1.3950. Commodity-linked currencies also advanced, with USD/CAD now nearing the 1.2300 threshold.

Gold surged and settled at 1,781 a troy ounce, while crude oil prices also closed the day with gains. WTI settled at $ 63.60 a barrel.

Bitcoin Price Prediction: BTC aims for massive 18% upswing if key support holds

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FXStreet Team

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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.