Forex Today: Risk-on paused, but still leads

Valeria Bednarik FXStreet

What you need to take care of on Friday, August 12:

The greenback seesawed between gains and losses, ending the day lower against most major rivals. Wall Street opened the day firmly higher amid more signals of receding US inflationary pressures, as the July Producer Price Index advanced by 9.8%, below expected.

Nevertheless and as US government bond yields advanced, equities lost steam, helping the dollar to recover some ground ahead of the daily close. At the time being, US indexes trade mixed around their opening levels, while the yield on the 10-year Treasury note stands at 2.88%.

The EUR/USD pair peaked at around 1.0360 for a second consecutive day, settling at around 1.0320. The GBP/USD pair trades just below 1.2200 ahead of the release of first-tier UK data. The country will publish the preliminary Q2 Gross Domestic Product estimate and June Industrial and Manufacturing Production.

The AUD/USD pair hovers around 0.7100, while USD/CAD trades at around 1.2770. Finally, safe-haven currencies eased at the end of the day, finishing it pretty much unchanged. USD/CHF hovers around 0.9420 while USD/JPY stands at 133.10.

Gold eased and is now trading at $1,785 a troy ounce. Crude oil prices increased, with WTI ending at $94.00 a barrel.

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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 looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold loses momentum, eases below $5,000

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.