Forex Today: Sentiment remained sour, but dollar’s demand receded

FXStreet Team FXStreet

Here is what you need to know on Friday, September 25:

The dollar maintained its positive momentum throughout the first half of the day, extending its rally to fresh weekly highs against most major rivals, although demand for the greenback receded during US trading hours. Stubbornly high weekly unemployment claims in the US weighed on the greenback. Movements were limited amid a light macroeconomic calendar.

In the UK, Finance Minister Rishi Sunak unveiled an emergency jobs scheme, which will result in the government and firms top up wages of workers whose jobs were affected by the pandemic. The new Job Support Scheme will cover three-quarters of normal salaries for six months starting next November. The announcement is part of a wider plan to protect the economy over winter, according to Sunak.

In its final day of testimony, US Federal Reserve Chief Powell said that there is “downside risk to the economy if some form of support to households doesn't continue,” once again urging lawmakers to provide fiscal support.

Gold trimmed intraday losses but was unable to turn positive for the day. It finished the day around $1,865.00 a troy ounce. Crude oil prices recovered some ground, finding support in the better performance of Wall Street. WTI closed at $40.00 a barrel.

Bitcoin and Ethereum rebound strongly and are poised for further gains

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EUR/USD tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.