Forex Today: Sentiment deteriorates amid concerns of a second coronavirus’ wave

FXStreet Team FXStreet

What you need to know on Wednesday, May 13th:

US inflation fell big in April. According to the official release, consumer prices sank 0.8% MoM in April, the biggest decline since 2008. Annual inflation was up a measly 0.3%, while the core annual CPI came in at -0.4%, amid plummeting oil prices. The news hit the greenback during US trading hours.

The market’s sentiment was mostly sour, amid persistent tensions between the US and China, and news indicating at least six new cases of coronavirus in Wuhan, China, where the pandemic stated.

The Pound came under selling pressure as the market tries to digest UK PM Johnson’s plan to bring the kingdom out of the lockdown. Also, the finance minister, Rishi Sunak, announced the furlough scheme would be extended until the end of October. That means that the government will continue to support roughly 7.5 million people at the cost of £14bn a month, although Sunak added that the government would ask companies to “start sharing” part of such cost starting next August.

Wall Street struggled around its opening levels for most of the day, although indexes collapsed ahead of the close, with the DJIA losing roughly 450 points. The Nasdaq and the S&P shed over 2.0% each. Commodity-linked currencies came under selling pressure and closed in the red against the greenback.

US Treasury yields continue to fell throughout the day, the yield on the 10-year note settled at 0.66%.

Commodities spent the day in consolidative mode, posting modest advances within familiar levels.

Cryptocurrencies: Bitcoin, Ripple & Monero – American Wrap

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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.

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.