Forex Today: Dollar gives up despite risk-off

What you need to take care of on Friday, May 20:

Despite persistent risk-aversion, the American currency changed course on Thursday and fell across the FX board. Fears gyrated around inflationary pressures and slowing economic growth.

Stocks markets remained under pressure, with most Asian and European indexes closing in the red, although off their intraday lows. Wall Street remained under pressure, although losses were limited.

Demand for safety continued, with government bonds appreciating and yields retreating.

Turkish President Recep Tayyip Erdogan said he would oppose Finland and Sweden joining NATO, while US President Joe Biden stood at the other end of the line, saying his country would fully support it. Erdogan claims the Nordic countries serve as a refuge for terrorists of  the Kurdistan Workers' Party,

 Meanwhile, the UK and the EU embarked on new Brexit tensions. As the first try to modify rules agreed in the Northern Ireland Protocol, the EU ambassador to the UK said the treaty is not open for new negotiations.

 The EUR/USD pair trades around 1.0590 after briefly surpassing the 1.0600 threshold. The GBP/USD holds a handful of pips below the 1.2500 threshold.

The Australian dollar was among the best performers despite tepid Australian employment data. AUD/USD holds around 0.7060, its highest for the week. The USD/CAD pair ticked lower and trades around 1.2810.

The Swiss Franc soared, with USD/CHF now trading at 0.9716, while USD/JPY is down to 127.70.

Gold neared $1,950 a troy ounce, now trading at $1,842. Crude oil prices were also up, with WTI now changing hands at $108.95 a barrel.

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