Forex Today: Sentiment deteriorates, dollar remains pressured

FXStreet Team FXStreet

What you need to know on Wednesday, May 20th:

The American currency remained pressured against most major rivals. The EUR/USD pair advanced up to 1.0975, although it finished the day unchanged at around 1.0920, with the greenback recovering some ground amid Wall Street accelerating its slump ahead of the close.

The French Finance Minister Bruno Le Maire said that the European Union recovery fund proposed by Germany and France, probably will not be available until 2021, deteriorating the positive sentiment that led the way on Monday.

The GBP/USD pair flirted with 1.23 and finished the day at 1.2250. In the UK, people filing for unemployment surged to 856.5K in April, much worse than the 150K expected, while the ILO unemployment rate for the three months to March unexpectedly fell to 3.9% from 4.0%. The kingdom also announced a new post-Brexit tariffs regime, expected to come into effect from January 2021. The plan includes cutting some tariffs on imports to near zero but will maintain a 10% levies on cars, agricultural products and the ceramics industry.

The USD/JPY reached 108.08 as the Bank of Japan called for an unscheduled monetary policy meeting on May 22, meant to discuss new measures to support small and medium business. It retreated to 107.70 as equities turn south in the American afternoon.

Gold prices were higher nearing $1,750 a troy ounce. Crude oil prices remain stable, with WTI ending the day around $31.00 a barrel.

Cryptocurrencies Price Prediction: Bitcoin, Ethereum & Ripple – American Wrap 19 May

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FXStreet Team

FXStreet

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

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Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

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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.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.