Forex Today: sentiment tosses and turns

FXStreet Team FXStreet

What you need to know on Thursday, May 28th:

Speculative interest remained sensible to sentiment-related headlines, trading in consequence. The main risk-negative factor was renewed tensions between the US and China, as the US government announced its studying sanctions on Chinese authorities and business over the recent developments in Hong Kong. US Secretary Pompeo officially declared Hong Kong “no longer autonomous,” after China’s intervention.

The EUR/USD pair rallied after thee EU Commission that proposed a 750 billion euro recovery fund. Also, the next EU budget proposed by the organism will be worth €1.1 trillion and will include the coronavirus recovery fund, according to sources familiar with the matter. The pair peaked at 1.1030 and settled around 1.1000.

Brexit-related headlines weighed on the Pound. According to PM Johnson’s spokesman, the UK has no will to extend the transition period beyond December 31. The EU and the UK will resume talks next week. GBP/USD finished the day around 1.2250.

Commodity-linked currencies were the worst performers, despite the positive tone of equities as gold and oil both fell. The bright metal, however, recovered ahead of the close and settled at around 1,712. Crude oil prices were sharply lower, losing around 5% after Exxon Mobil CEO Darren Woods mentioned Exxon expects a 10% decline in demand in 2020 due to lost economic activity. Focus now shifts to US stockpiles data.

Cryptocurrencies Market News: Crypto sentiment improves despite Goldman Sachs slamming Bitcoin

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EUR/USD faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

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.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.