Forex Today: Risk appetite boosted by US President Biden’s spending plan

FXStreet Team FXStreet

What you need to know on Friday, May 28:

Financial markets were in a better mood. US President Joe Bide is said to propose a $6 trillion budget, to invest in infrastructure, education, health care and more. Meanwhile, Senate Republicans unveiled a counteroffer of $928B infrastructure investment. Wall Street headed firmly up ahead of the opening, retreating afterwards but anyway ending the day in the green.

Government bond yields were also up, with that on the 10-year US Treasury note up to 1.62%, 7 points higher from weekly lows, to finally settle around 1.60%.

The greenback ended the day mixed against its major rivals. The EUR/USD pair hovers around 1.2200, unable to extend gains. On the other hand, GBP/USD rallied beyond 1.4200 after BOE’s policymaker Gertjan Vlieghe said that the central bank could raise interest in the first half of the next year if the job market bounces back faster than expected. However, worth noting that Vlieghe’s term as an external MPC member expires in August and cannot be renewed.

The AUD/USD pair held around 0.7740 as gold ended the day unchanged at around $ 1,888 a troy ounce. The Canadian dollar appreciated against the greenback as crude oil prices soared, with USD/CAD trading at around 1.2070 and WTI at $ 66.85 a barrel.

The USD/JPY pair woke up and approached 110.00 its highest in almost two months.

XRP Price Prediction: Ripple bears eye $0.75

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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.