Forex Today: Risk-on likely to extend into the weekly opening

FXStreet Team FXStreet

What you need to know on Monday, April 19:

The American currency extended its decline against most major rivals as the week came to an end, as risk appetite led.

US indexes kept rallying, with the DJIA and the S&P 500 reaching record highs, as solid US macroeconomic figures hint at a substantial economic comeback from the pandemic collapse. Despite the upbeat mood, US Treasury yields managed to recover some ground. The yield on the 10-year Treasury note settled at 1.59% after bottoming for the week at 1.52%.

The EUR/USD pair held near but below the 1.2000 mark, while GBP/USD soared past 1.3800, ending the week in the 1.3830 price zone.

The Canadian dollar advanced against its American rival, but the Australian currency edged marginally lower on Friday, despite the risk-on mood.

Gold prices held on to weekly gains, ending the week at $ 1,776.30 a troy ounce. Crude oil prices also finished the week with substantial gains, with WTI at $ 63.13 a barrel.

Coronavirus: The US and the UK continue their immunization program, advantaging most European countries, which suffer from a new wave of covid. Different countries have announced new lockdowns and curfews and even travel restrictions particularly from South American, where the Brazilian strain is taking its toll.

Breaking: Bitcoin price crashes 14% sending cryptocurrency market into tailspin

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD: Daily gains remain capped by 1.3650

GBP/USD leaves behind Monday’s pessimism and advances marginally on Tuesday. Cable’s humble gains, however, appear to have met quite a decent resistance in the 1.3650 zone for now, in a context of a slight selling pressure hovering around the Greenback.

EUR/USD struggles to regain pace; gyrates around 1.1670

EUR/USD clinches humble gains around 1.1670 following Tuesday’s close on Wall Street. Indeed, marginal losses in the US Dollar encourages spot to set aside two dauly pullbacks in a row and maintain the 1.1700 barrier on the cross-hairs for now. Moving forward, US inflation tracked by the PCE and another revision of Q2 GDP data should keep investors entertained on Wednesday.

$4700 back on Gold buyers’ radar as US core PCE inflation data looms

Gold is heading back toward the fresh 15-week highs of $4,697 in Wednesday’s Asian trades, reversing a brief dip below the $4,650 level. Gold buyers find renewed strength from a broadly subdued US Dollar (USD), as they look to reposition ahead of the US core Personal Consumption Expenditures (PCE) Price Index data for July.

Bitcoin pauses near $80,000, Ethereum at $2,500, XRP below $1.50

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are facing downside pressure near key psychological thresholds as last week's double-digit rally loses momentum. The pullback reflects near-term corrective measures as traders book profits. Bitcoin trades near $78,760 at press time on Wednesday, maintaining its bullish bias after last week's 23% rally.

America’s self‑inflicted trade wound

I’m conflicted about the trade war that the U.S. has started with Canada. Let’s be clear: any representation that Canada has been taking unfair advantage of the U.S. or that they have been treating us badly for years is a bogus characterization. In reality, the shoe is on the other foot. It’s the U.S. that has been behaving badly.

Canada hits US goods with tariffs; The rate market sees a problem

On September 8, Canada begins charging its own importers 15%, 25% and 50% on roughly 700 lines of American goods. The measure is billed as dollar for dollar, and on the arithmetic of covered trade it is. What it is not is a tax on the United States.