Forex Today: The return of King Dollar

FXStreet Team FXStreet

What you need to know on Wednesday, February 3:

The American dollar strengthened further, surging to fresh 2021 highs against EUR, AUD and CHF. Nevertheless, it appreciated against all of its major rivals.

The catalyst was progressing US stimulus talks. Talks between US President Joe Biden and Republican senators were productive, according to Senator Susan Collins. Nevertheless, there’s a huge difference between Biden’s $1.9 trillion package and Republicans counter offer of roughly $ 600 billion. Additionally, Democratic congressional leaders pushed forward a budget resolution, allowing them to pass Biden’s coronavirus relief bill without Republican support.

The GBP/USD fell to the 1.3610 level, bouncing afterwards. It’s the second time this year that the pair bounces from the level. The third time could be a charm.

The Canadian dollar was the best performer against the greenback, as crude oil prices soared to their highest in a year, amid signs of supply tightness. WTI settled at $54.70 a barrel.

Gold prices, on the other hand, plunged, partially weighed by renewed dollar’s demand, and partially undermined by retreating Silver prices as retail investors’ frenzy keeps receding.

Equities soared on optimism, with global indexes closing in the green.

Coronavirus immunization continues at a choppy pace. Delivery delays persist in Europe, while Israel and the UK accelerate the pace of vaccination. Restrictive measures have been extended in Scotland and Japan. The global number of new cases receded from record lows and stands at October 2020 levels, although the death toll remains elevated. Hopes persist that an economic comeback will take place in the second half of the year.

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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.