Forex Today: Run for safety keeps supporting the USD

FXStreet Team FXStreet

Here is what you need to know on Tuesday, February 25th:

Panic hit the financial word, amid concerns of the possible effects of the coronavirus on global growth. The illness spread outside China, with Italy, South Korea and Iran reporting the largest number of cases. The dollar gapped higher at the weekly opening, amid demand for safety, but trimmed daily gains on mixed US data and persistent weakens in Wall Street.
The EUR/USD pair hit a weekly high of 1.0871, but settled around 1.0845, unchanged from Friday’s close, despite an upbeat German IFO survey.
The GBP/USD pair ended the day in the red around 1.2920, amid mounting tensions ahead of the EU-UK trade deal.
The Japanese yen firmed up, with USD/JPY trading as low as 110.30.
Wall Street collapsed, with the DJIA down over 1,000 intraday.
Gold prices soared, spot flirted with $1,690.00 a troy ounce, trimmed most daily gains ahead of the close.
Crude oil prices were sharply lower and recovered just modestly, as Saudi Aramco CEO expects only a limited coronavirus impact on oil demand.
Cryptocurrencies jumped at the beginning of the day but were unable to hold on to gains. BTC/USD sub-10,000.

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FXStreet Team

FXStreet

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.