Forex Today: Risk-off to continue leading the way

Valeria Bednarik FXStreet

What you need to know on Monday, July 19:

The dollar keeps strengthening on growth-related concerns. Mixed data released in the US on Friday somehow confirmed investors are concerned about the slower pace of growth. Wall Street edged lower, posting substantial losses on Friday after posting record highs. US Treasury yields remained depressed, with that on the 10-year note settling at 1.30%.

High-yielding currencies were hit by the dismal mood. EUR/USD settled around 1.1800 while the GBP/USD pair fell to 1.3760, nearing a multi-month low of 1.3730. Commodity-linked currencies were sharply down. AUD/USD reached a fresh 2021 low of 07391, while USD/CAD finished the week at 1.2605.

Coronavirus: on Saturday, the UK reported 54,674 new coronavirus cases, the biggest one-day increase since January, and 41 new deaths. In the US, not all states are reporting as previously, although all indicators continued to rise. Nevertheless, the % of deaths among those vaccinated is lower of that of the common flu.

Gold suffered from the greenback’s strength, with the bright metal settling at $1,811.87. Crude oil prices consolidate losses on Friday, with WTI settling at $71.15 a barrel.

Dogecoin Price Prediction: DOGE primed for a 20% bounce

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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.

AUD/USD meets support around 0.6900

AUD/USD remains well on the defensive, bouncing off three-month lows near the 0.6900 level ahead of the opening bell in Asia on Friday. The pair has accelerated its weekly downtrend in response to the marked advance in the Greenback and the widespread selling pressure on the risk-linked assets.

USD/JPY sits at weekly top above 158.00 as bullish USD counters intervention risks

USD/JPY is sitting at the top end of its weekly range above 158.00 in the Asian session on Thursday. Despite the softer US PCE data, oil-driven inflation risks keep US bond yields elevated near multi-year highs. Moreover, the US-Iran standoff benefits the safe-haven US Dollar and supports the pair. Broad US Dollar strength counters hawkish BoJ expectations and Japanese intervention risks.

Gold alternates gains with losses below $4,200

Gold trades without a clear direction on Thursday, always below the key $4,200 mark per troy ounce. The yellow metal’s vacillating price action comes amid the marked advance in the US Dollar coupled with steady effervescence in the Middle East conflict.

Near Protocol slides below $5.00 after Near Intents $4M exploit

Near Protocol (NEAR) uptrend has been cut short, as the price slides below $5.00 on Thursday. The correction comes after an exploit on the network’s Near Intents services, which affected deposits and withdrawals across 11 crypto networks. NEAR is currently trading at $4.88, below the daily high of $5.54, while falling momentum indicators suggest that sellers are gaining the upper hand.

Markets are pricing a Fed pause. The jobs data says the hike is still coming

The market has rapidly changed its mind about the Fed. Only a week ago, investors saw an October interest-rate hike as the most likely outcome. However, softer inflation and cautious comments from policymakers have since turned a pause into the dominant scenario.

Markets are pricing a Fed pause. The jobs data says the hike is still coming

The market has rapidly changed its mind about the Federal Reserve (Fed). Only a week ago, investors saw an October interest-rate hike as the most likely outcome. However, softer inflation and cautious comments from policymakers have since turned a pause into the dominant scenario. Yet beneath that dramatic repricing, the US economy is sending a considerably less dovish message.