Forex Today: Yields, the Fed and the dollar

FXStreet Team FXStreet

What you need to know on Thursday, May 20:

The dollar edged higher across the board, ending the day with gains against most major rivals. The FOMC released the Minutes of its latest meeting, and while the document showed that officials maintain their cautious stance, some of them are willing to discuss tapering in the next few meetings. That line triggered a run in yields, and put pressure on equities.

The yield on the 10-year US Treasury note peaked at 1.69%, to finish the day at 1.67%. Wall Street got to bounce from intraday lows, but the three major indexes closed in the red.

The EUR/USD pair settled around 1.2160, while GBP/USD hovers a handful of pips above the 1.4100 threshold. Commodity-lined currencies were affected by the poor performance of equities and falling gold and oil prices.

The bright metal surged to $1,889.96 a troy ounce, but trimmed most of its gains ahead of the close, ending the day around 1,870.00. WTI settled at $ 63.30 a barrel, bouncing from a fresh weekly low of 61.93.

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EUR/USD stays defensive below 1.1900 as USD recovers

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GBP/USD holds above 1.3600 after UK data dump

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Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

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