Forex Today: Optimism fades at the start of the week – FXStreet

Here is what you need to know on Monday, May 16:
Markets have turned risk-averse at the start of the week following the risk rally witnessed on Friday. The disappointing macroeconomic data releases from China, coronavirus-related concerns and heightened fears over a global economic slowdown allow safe-haven flows to continue to dominate the markets. The European Commission will release the Economic Growth Forecasts for the euro area and the Bank of England's Monetary Policy Hearing will take place in the UK parliament. In the second half of the day, the Federal Reserve Bank of New York's Empire State Manufacturing Survey will be looked upon for fresh catalysts.
The data from China showed earlier in the day that Retail Sales contracted by 11.1% on a yearly basis in April, missing the market expectation for a decline of 6% by a wide margin. Additionally, Industrial Production narrowed by 2.9% in the same period, compared to analysts' forecast for a growth of 0.7%. Meanwhile, the city of Shanghai announced that coronavirus controls will remain in place due to the high risk of a rebound in infections despite the fact that five out of the city's 16 districts have reported no cases. Moreover, the city of Beijing decided to extend the work-from-home orders in four districts, including Chaoyang.
The US Dollar Index, which snapped a six-day winning streak and lost 0.3% on Friday, is staying relatively quiet near 104.50 early Monday. The benchmark 10-year US Treasury bond yield is moving sideways near 2.9% and US stock index futures are down between 0.5% and 0.7%.
EUR/USD lost more than 100 pips last week and stays relatively quiet near 1.0400 early Monday. Eurostat will release the Trade Balance data for March later in the session.
GBP/USD rose toward 1.2300 during the Asian trading hours on Monday but failed to preserve its recovery momentum.
USD/JPY trades in negative territory near 129.00 in the European morning. Bank of Japan Governor Haruhiko Kuroda said earlier in the day that it was important for them to continue to support the economy with powerful monetary easing. Despite these comments, the risk-averse market environment helps the Japanese yen find demand.
Gold fluctuates in a tight channel above the key $1,800 mark early Monday. The yellow metal continues to have a difficult time capitalizing on safe-haven flows. 
Following the decisive rebound witnessed over the weekend, Bitcoin came under renewed selling pressure at the start of the week and was last seen trading near $29,500, where it was down nearly 6% on the day. Ethereum turned south and started testing $2,000 after gaining nearly 6% in the previous two days.

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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
 EUR/USD dropped to 1.0417 in the early American session on Monday. With Wall Street's main indexes suffering heavy losses after the opening bell, the dollar continues to gather strength ahead of the US Federal Reserve monetary policy decision.
 GBP/USD remains under pressure, despite the bleeding paused. The broad-based dollar strength on risk-aversion and the disappointing data releases from the UK force the pair to stay on the back foot at the start of the week.
Gold edged lower on Monday as investors rushed into the greenback in a risk-averse environment. XAU traded as low as $1,823.39, now changing hands at around $1,830. Financial markets are all about skyrocketing US Treasury yields after the country released its latest inflation figures on Friday. 
A brief technical and on-chain analysis on Bitcoin price. Here, FXStreet's analysts evaluate where BTC could be heading next. 
Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

source

Leave a Reply

Your email address will not be published.