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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The focus shifts to the main event of the week, the ECB Monetary Policy Meeting.

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EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.