Forex Today: Quiet start to a busy week

FXStreet Team FXStreet

Here is what you need to know on Monday, August 17:

The dollar remained intrinsically weak, amid mixed US data and news indicating that the US Congress decided to take a month-long holiday without agreeing on a stimulus package. Major pairs, however, closed the week little changed and held within familiar levels.

The USD/JPY pair was an exception, reaching a fresh August high on the back of resurgent US government debt yields. Inflation and employment data released these days came in better-than-anticipated, fueling hopes of a sooner than expected US economic comeback. The yield on the benchmark 10-year note peaked at 0.72% this week, to settle at 0.70%.

On Friday, US President Trump said in a press conference that he will not cut a deal with Democrats on the coronavirus relief bill because of the money they are seeking for cities and states. Congress members have left for a month-long holiday last Thursday.

Tensions between the US and China continue. On Friday news showed that a review of the trade deal that was supposed to take place over the weekend had been postponed without any new date scheduled.

Wall Street posted a modest advance, but summer doldrums took their toll on equities as the three major indexes remain within limited intraday ranges.

Gold prices collapsed this past week after hitting all-time highs, to stabilize around $ 1,950 a troy ounce. The metal shed some ground on Friday but held around its new comfort zone. Crude oil prices, in the meantime, remained stable, with WTI ending the week at $42.10 a barrel.

Japan is set to report early Monday its Q2 GDP, foreseen -27.2%.

BTC/USD extends sideways grind after failed attempt to take $12,000

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FXStreet Team

FXStreet

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.