Forex Today: Vaccine, earnings optimism downs the dollar; eyes on COVID-19 stats, BOE’s Bailey


Here is what you need to know on Monday, July 13:

The risk-on sentiment emerged as the main market driver starting out the week, amid a quiet Asian affair, in the absence of relevant macro news.

US dollar remained on the back foot amid the upbeat market mood, as the coronavirus vaccine optimism, following Friday’s Gilead’s latest report and antiviral drug trials underway in China and Australia, continued to dull dollar’s safe-haven appeal.

Expectations of upbeat US earnings reports this week and reports that President Donald Trump wore a mask for the first time bolstered the appetite for the higher-yielding assets.

The Asian stocks rallied 2% while the S&P 500 futures gained 0.50%. Markets paid little heed to the growing virus count across the globe. The World Health Organization (WHO) reported record daily increase in global cases, up over 230,000. The biggest increases were from the US, Brazil, India and South Africa.

Within the G10 fx basket, the aussie dollar was the outperformer, with AUD/USD heading back towards 0.7000. GBP/USD jumped to near 1.2670 levels amid the risk-on mood and UK stimulus optimism. The kiwi failed to benefit and traded flat around 0.6580.

USD/CAD extended the drop below 1.3600 despite the decline in oil prices. WTI fell nearly 1% to test the $40 mark amid talks of the OPEC+ easing the output cuts at its meeting due later this week.

EUR/USD firmed up above 1.1300 despite the US imposing tariffs on French imports for up to $1.3 billion, in response to France’s digital services tax. USD/JPY, meanwhile, traded listless below 107.00, as traders await fresh impetus from the critical US CPI and Retail Sales due for release in the week ahead.

Gold started the week on the front foot above $1,800 a troy ounce, underpinned by broad US dollar weakness and looming virus concerns.

Cryptocurrencies consolidated the previous spike, with Bitcoin holding up above $9200.

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 

EUR/USD News

GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.

GBP/USD News

Gold: Meteoric rally falters, closes the week below $2050

Dollar comeback poured cold water on gold’s record-breaking rally. US-China woes, US stimulus deadlock and upbeat NFP boosted the USD. The focus stays on US-China trade talks amid light US docket next week.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI extends slide toward $41, on track to post weekly gains

Crude oil prices continued to fall on Friday and the barrel of West Texas Intermediate (WTI) touched a daily low of $41.05 before recovering modestly.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures