Forex Today: Profit-taking may help the greenback this Friday

FXStreet Team FXStreet

Here is what you need to know on Friday, December 18:

The American dollar was the biggest loser on Thursday, falling to fresh multi-year lows against most major rivals. Speculative interest kept pricing in an upcoming stimulus package in the US and a Brexit trade deal, despite no progress was reported on any of both.

Regarding Brexit, EU’s chief negotiator Michel Barnier was reported saying that a deal can be achieved by Friday. Later in the day, hopes cooled after PM Boris Johnson’s spokesman said that the most likely outcome would be a deal on WTO terms. British Cabinet Minister Michael Gove repeated the comment and added that there still are significant differences in some areas. He also said that trade talks might go on until after Christmas. Barnier will brief EU’s member states early Friday.

Tepid US data fueled the dollar’s decline during the American session. Initial Jobless Claims for the week ended December 11 jumped to 885K, worse than anticipated. The December Philadelphia Fed Manufacturing Survey contracted to 11.1 from 26.3. On a positive note, Housing starts were up in November by 1.2%, while Building Permits increased by 6.2%

The Bank of England had a monetary policy meeting, but it was a non-event, as it maintained the status quo. Same could be expected from the Bank of Japan that meets early Friday.

Gold reached a December high of $1,896.20 a troy ounce, ending the day with solid gains around 1,885.00. Crude oil prices consolidated gains and settled at $48.50 a barrel.

Bitcoin price vertical blow-offs cannot be sustained, says trading veteran Peter Brandt

Author

FXStreet Team

FXStreet

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.