US-China clash: Consequences

EUR/USD stays under modest bearish pressure and trades below 1.1600 in the second half of the day on Wednesday. Markets await the US House vote on the stopgap funding bill that will end the government shutdown. Meanwhile, investors will pay close attention to comments from Fed policymakers.

GBP/USD extends its daily slide and drops below 1.3100 in the American session on Wednesday. The US Dollar stages a rebound in anticipation of the US government reopening and weighs on the pair, despite the risk-positive market atmosphere. Fedspeak and the US House vote on the funding bill are awaited. 

Gold enters a consolidation phase and fluctuates above $4,100 following the bullish action seen earlier in the week. The improving market mood makes it difficult for XAU/USD to push higher as market focus shifts to House vote on funding bill and Fed commentary.

Bitcoin rises in tandem with other crypto majors and is trading above $104,000 at the time of writing on Wednesday. Altcoins, including Ethereum and Ripple, are also edging higher, hovering above $3,400 and $2.40, respectively.

As we move through the European trading session on Wednesday, there is residual optimism in the market that continues to boost risk sentiment. European indices are having another strong day, although the FTSE 100 is bucking this trend and is posting a small loss.

Chainlink (LINK) price steadies around $15.35 on Wednesday after finding strong support near the lower trendline last week, signaling renewed buying interest. The launch of Chainlink Rewards Season 1 could boost network engagement and token participation.