Forex Today: US progress boosts the greenback


What you need to know on Wednesday, May 5:

 The American dollar was the overall winner this Tuesday, advancing against most of its major rivals. The greenback got boosted by local data suggesting continued economic improvement, but also by comments from US Treasury Secretary Janet Yellen, who said that  “interest rates will have to rise somewhat to make sure that our economy doesn't overheat.” Yellen will participate in another event early in the upcoming Asian session, and her words my spur additional dollar gains. EUR/USD ended the day just above the 1.2000 level.

Brexit returns to the spotlight. The pound remained subdued and closed the day sub-1.3900 against the greenback. The French government rejected Britain’s latest regulation for fishing in its waters near the Channel Islands.  French fishermen have complained that they are being prevented from operating in British waters because of difficulties in obtaining licenses, a Brexit-related issue that has escalated in the last few weeks.

Commodity-linked currencies eased against the greenback, although the Canadian dollar’s decline was limited, as oil prices soared. WTI settled at $ 65.70 a barrel, back by resurgent demand. Gold, on the other hand, flirted with 1,800 before turning sharply lower and finished the day at $ 1,778.90 a troy ounce.

European and US indexes closed mostly in the red after a strong start to the day. Yellen comments weighed. US Treasury yields eased, with that on the 10-year note down to 1.59%.

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: ETH waits for no one, while art market goes crypto

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD rises above 1.2150 amid upbeat German data

EUR/USD has been rising above 1.2150 after the German ZEW Economic Sentiment gauge beat expectations with 84.4 points. Earlier, concerns about inflation boosted the dollar. 

EUR/USD News

GBP/USD trades off the highs amid risk-off mood, ahead of Bailey

GBP/USD is trading above 1.41 but off the fresh highs. The safe-haven dollar is gaining ground amid fears of inflation. UK PM Johnson's announcement of additional easing of restrictions boosted the pound on Monday. BOE Governor Andrew Bailey is set to speak later on.

GBP/USD News

XAU/USD remains confined in a range below $1,840 level

Gold is in the hands of the bulls but a correction is on the cards.  The monthly outlook is critical which makes the next few weeks testing for the gold market. 

Gold News

BTC crashes, markets follow suit

The cryptocurrency market experienced a crash as the flagship cryptocurrency tumbled. Although some altcoins are recovering, Bitcoin price is still scrambling to find a support level and might trigger another sell-off soon.

Read more

Nasdaq (NDX QQQ) Technical view, key chart levels, Nasdaq tests trendline support

The Nasdaq is trading nicely from resistance to support. Friday's rally stalled at the convergence of the 9 and 21-day resistance. Monday sees the resistance work well and so the Nasdaq sells off and currently finds support at the lower trendline seen in the chart below.

Read more

Forex MAJORS

Cryptocurrencies

Signatures