Forex Today: Sentiment leads the way

FXStreet Team FXStreet

What you need to know on Thursday, April 22:

Currencies moved according to stocks and sentiment, amid quite a scarce macroeconomic calendar. The dollar came under selling pressure in the last trading session of the day, with major pairs seesawing between gains and losses to finish the day within familiar levels.

The EUR/USD pair briefly pierced the 1.2000 level but ended the day unchanged around 1.2030. GBP/USD had similar behaviour, falling to a fresh weekly low before trimming intraday gains.

The Canadian dollar soared after the Bank of Canada decided to leave its key rate unchanged at 0.25%, while cut the weekly net purchases of the government of Canada bonds to a target of C$3 billion from C$4 billion. The policy statement noted that the “adjustment to the amount of incremental stimulus being added each week reflects the progress made in the economic recovery.” USDCAD settled just below 1.2500 after bottoming at 1.2459

The aussie recovered alongside Wall Street, with AUD/USD heading into the Asian opening trading around 0.7750.

Gold prices surged, with the bright metal flirting with $1,800 a troy ounce, to end the day at 1,793.60. Crude oil prices, on the other hand, extended their declines, with WTI finishing at $ 61.00 a barrel.

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FXStreet Team

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EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.