Forex Today: Stimulus optimism, coronavirus concerns

FXStreet Team FXStreet

What you need to know on Tuesday, March 2:

Upbeat US data and the better performance of equities pushed the greenback higher against its European rivals and lower against commodity-linked ones. The EUR/USD pair trades sub-1.2100 while GBP/USD was rejected from near 1.4000. The Australian and Canadian dollars advanced, despite commodities' prices edged lower.

Gold prices resumed their declines after a failed attempt to regain the upside, with spot ending the day at $1,720.00 a troy ounce. WTI fell to $60.00 a barrel

The USD/JPY pair nears 107.00 amid combined dollar’s demand and higher equities. US Treasury yields, in the meantime, had a quiet day, hovering around Friday’s closing levels.

Wall Street advanced after the US House of Representatives passed US President Joe Biden’s stimulus bill. Democrats hope to have it finished by March 14, when the current stimulus expires.

Coronavirus: the number of global new contagions increased last week for the first time in almost two months. Meanwhile, experts suspect the Brazilian strain could evade natural immunity, rising all the alarms. The world continues vaccine immunization at an uneven pace.

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EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

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Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.