Forex Today: Risk-on weighs on the greenback

Valeria Bednarik FXStreet

What you need to know on Monday, August 30:

The American dollar was sharply down on Friday, following words from US Federal Reserve Chair Jerome Powell. Speaking within the Jackson Hole Symposium, Powell said back in July, policymakers believed that it could be appropriate to start tapering this year, noting progress in employment but also adding the worrisome spread of the Delta variant. “We will be carefully assessing incoming data and the evolving risks,” he said. Quite a dovish comment that sent stocks up and the dollar down.

The Swiss Franc was the best performer against the greenback, while the Japanese Yen was the worst. EUR/USD flirted with 1.1800, holding nearby, while GBP/USD was rejected from around 1.3800. Commodity-linked currencies advanced, with AUD/USD currently trading around 0.7300 and USD/CAD standing at around 1.2610.

Spot gold soared to $1,819.26 a troy ounce, its highest in three weeks, ending the week around 1,817. Crude oil prices saw a modest advance, with WTI settling at $68.60 a barrel.

Wall Street rallied, with the S&P500 and the Nasdaq Composite posting record closes amid speculation the US Federal Reserve will maintain financial support, despite hawkish comments from multiple Fed officials.

US Treasury yields retreated from weekly highs but settled at the upper end of their range. The yield on the 10-year Treasury note stands at 1.31%.

Bitcoin price yearning for a firm break above $50,000 amid looming options expiry

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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 treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.