Forex Today: Risk appetite smashes the dollar

FXStreet Team FXStreet

What you need to know on Wednesday, May 27th:

Risk-on led the way as investors welcomed news related to economic reopenings and developments around possible COVID-19 vaccines. The greenback fell against all of its major rivals while stocks jumped globally. US indexes reached levels that were last seen in March.

Novavax, a US biotech company, announced that it had started human trials of a COVID-19 vaccine, in Australia. Results are expected by July, where the next phase of testing should begin. Right now, there are twelve different vaccines being tested around the globe.

The EUR/USD pair flirted with the 1.1000 level but was unable to clear it.

The Pound soared amid rumours indicating progress in Brexit talks. According to the latest headlines, the EU is willing to shift its stance on fisheries when talks resume next week, potentially opening the doors for other concessions between both parts.

The USD/JPY pair remained lifeless for a fifth consecutive day as the market ignored safe-haven assets.

The AUD and the CAD run to fresh multi-week highs against the greenback, backed by the rally in equities.

By the end of the US session, news made the rounds indicating that the US is considering a range of sanctions on China amid Beijing’s pressure on Hong Kong. Earlier in the day, Trump’s advisor Kudlow said that the President is not concerned about the trade deal that’s intact for the moment. He added that Trump’s main concerns are more related to China’s responsibility on the coronavirus spread and Hong Kong.

Gold eased and settled at around $1,710.00 price zone amid the better market mood. Crude oil prices edged higher, amid shrinking supply and hopes on economic comebacks.

Cryptocurrencies Price Prediction: Bitcoin, Ripple & Monero – American Wrap 26 May

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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.