Forex Today: Risk appetite pressures the greenback

Valeria Bednarik FXStreet

What you need to know on Thursday, October 21:

The greenback remained under selling pressure and shed ground against all of its major rivals, including that considered safe-haven. The American dollar enjoyed from some temporal demand early in the European session, as US government bond yields jumped to fresh multi-month highs, with the yield on the 10-year Treasury note peaked at 1.673%, but retreated toward 1.64%. Earlier in the year, the yield moving past 1.70% used to trigger sharp dollar’s demand.

The EUR/USD pair trades around 1.1650, posting a modest intraday advance. European Central Bank policymaker Francois Villeroy repeated that current inflation spikes are expected to be temporary. The EU released the final version of the September Consumer Price Index, which was confirmed at 3.4% YoY in September, while the core annual reading printed at 1.9%, validating the European Central Bank’s wait-and-see stance.

GBP/USD finished the day above 1.3800 despite mixed UK inflation data. The Consumer Prices Index came in at 3.1% YoY in September when compared to 3.2% recorded in August. The core reading fell to 2.9% YoY last month from 3.1% registered in August, falling short of the consensus forecast of 3.0%. The BOE is anyway expected to raise rates sooner rather than later, which helped to keep the pound afloat.

Commodity-linked currencies reached fresh multi-month highs versus the greenback. AUD/USD trades around 0.7520, while USD/CAD pressures the 1.2300 mark. The USD/JPY pair ticked lower and settled at 114.26.

Gold posted a third consecutive higher high on a daily basis and settled at around $1.784 a troy ounce. Crude oil prices dipped ahead of the US opening but ended the day at fresh multi-year highs. WTI settled at $83.25 a barrel.

Bitcoin price targets $125,000 as next major all-time high

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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 turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.