Forex Today: Sell! Sell! Sell!

FXStreet Team FXStreet

What you need to know on Friday, May 12th:

Fear turned into panic during US trading hours, leading to one of the worst days in Wall Street for this year. The conservative view from the US Federal Reserve about an economic recovery led the way. The dollar edged higher against most major rivals, except those considered safe havens.

US President Trump was unable to come to the rescue, although he tried. Mid-US afternoon, he tweeted: “ The Federal Reserve is wrong so often. I see the numbers also and do MUCH better than they do. We will have a very good Third Quarter, a great Fourth Quarter, and one of our best ever years in 2021. We will also soon have a Vaccine & Therapeutics/Cure. That’s my opinion. WATCH!”

US weekly unemployment claims hit 1.54 million in the week ended June 5, slightly better than anticipated. Continuing Jobless Claims, however, edged higher to roughly 21 million in the week ended May 29.

The Pound was among the worst performers ahead of critical UK growth-related data. Brexit woes added pressure, as UK Cabinet Minister Michael Gove hit the wires this Thursday, repeating that they won’t ask for an extension, despite the lack of progress in talks with the EU. GBP/USD settled around 1.2580.

The EUR/USD pair lost the 1.1300 figure ahead of the close, finally giving up to risk-aversion. Commodity-linked currencies, however, were the most affected by Wall Street’s slump.

Crude oil prices plummeted over 6% amid decreasing hopes for an economic recovery.

Gold prices reached fresh weekly highs, with spot hitting $1,744.70 a troy ounce. The metal, however, lost momentum as the day went by, ending it in the red around 1,730.

Cryptocurrency Market News: Bitcoin drops to $9,100, the rest of the market follows suit

Author

FXStreet Team

FXStreet

EUR/USD struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

The weekender: When software turns the blade on itself

Autonomous AI does not just threaten trucking companies and call centers. It challenges the cognitive toll booths that legacy software has charged for decades. This is not a forecast. No one truly knows the end state of AI.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.