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

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FXStreet Team

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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.