Forex Today: Yields return to the spotlight

FXStreet Team FXStreet

What you need to know on Thursday, March 4:

The greenback managed to recover some ground against most major rivals, once again advancing alongside government bond yields. Mid-European morning, headlines showed that the European Central Bank reportedly sees no need for drastic action to curb recent developments in the bond market, according to officials familiar with discussions. Yields rallied afterwards, with that on the US 10-year Treasury note nearing 1.50%. The EUR/USD pair finished the day around 1.2060

The GBP/USD settled around 1.3960. UK Chancellor Rishi Sunak presented the 2021 budget, which included further support for companies and citizens and a plan to increase taxes in the near future to bankroll the pandemic-related spending. The furlough scheme will be extended until the end of September. The government expects the economy to return to pre-coronavirus GDP levels by mid-2022.

Commodity-linked currencies finished the day little changed against the greenback, amid mixed hints. Crude oil prices surged, with WTI settling above $61.00 a barrel, despite the EIA reporting a huge increase in stockpiles of 21.5 million in the week ended February 26.

Gold, on the other hand, plummeted to $1,701.85 a troy ounce, bouncing towards the 1,716 level by the end of the day Wall Street opened lower, but got to bounce from intraday lows, ending the day with losses.

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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.