Forex Today: Risk sentiment to keep leading the way

Valeria Bednarik FXStreet

What you need to know on Monday, July 12:

The market mood improved ahead of the weekly close, with the greenback down against most of its major rivals. The Pound was the best performer, while the JPY was the worst.

The EUR/USD pair held within familiar levels, settling at 1.1875, while GBP/USD trades around the 1.3900 level. Commodity-linked currencies advanced, with the CAD getting boosted by Canadian employment figures, as the country added 230.7K new jobs in June, largely surpassing expectations. The unemployment rate decreased from 8.2% to 7.8% while the Participation Rate increased to 65.2%.

Over the weekend, Japan´s top government spokesman said that the country is ready to pump more money into the economy to ease the pain of a prolonged pandemic and after announcing yet another state of emergency for Tokyo.

US Treasury yields bounced from Thursday’s low, with that on the 10-year note settling at 1.36% after plummeting to 1.25%.

Wall Street soared, with the DJIA adding roughly 450 points, and the S&P hitting fresh all-time highs.

Gold finished the week with modest gains at $1,808 a troy ounce, while crude oil prices were unchanged, with WTI trading at $74.60 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 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.

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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.