Forex Today: Slow start to another busy week

FXStreet Team FXStreet

What you need to know on Monday, May 4th:

The American dollar closed Friday mixed, down against its EUR and the JPY but up against other major rivals. Commodity-linked currencies were the ones that suffered the most, as Wall Street plunged.

The US April ISM Manufacturing PMI came in at 41.5, down fro the previous 49.1 but above the expected 36.9. The sub-components, however, were quite disappointing, particularly the employment one, which plunged to 27.5.

US President Trump menaced to impose fresh tariffs on China amid the miss-handling of the coronavirus outbreak, weighing on the market’s sentiment. Wall Street closed deep in the red, further undermined by dismal earnings reports.

UK PM Johnson was optimistic about the coronavirus situation, as he tweeted that the kingdom is “past the peak and on the downward slope.” Nevertheless, it is quite unlikely that the UK will lift the lockdown anytime soon, suggesting an extended economic setback ahead.

Gold prices recovered ground on Friday amid renewed risk aversion. Spot gold settled at around $1,700.00.

US crude oil settled just below $20.00 a barrel after Baker Hughes reported the number of active rigs declined for a seventh consecutive week to 408 from 465 in the previous week.

Cryptocurrencies spent Sunday consolidating near their recent highs. BTC/USD clings to modest gains above $9,000.

Author

FXStreet Team

FXStreet

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

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.