Forex Today: Brexit and US stimulus package shaking the financial world

FXStreet Team FXStreet

Here is what you need to know on Friday, October 2:

Fundamental news kept investors on their toes this Thursday, which rather ignored macroeconomic developments. The key themes were the US stimulus package and a post-Brexit deal between the UK and the EU.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued discussing a possible coronavirus aid package. However, mid-US afternoon, Pelosi said that Republicans and Democrats are still far apart on state and local aid, adding that she is still optimistic about reaching a deal.

Regarding Brexit, the European Commission announced it would send a “letter of formal notice” to the UK for breaching the Withdrawal Agreement. British PM Johnson's spokesman, on the other hand, reiterated that they are committed to working through the Joint Committee to find a solution to Northern Ireland protocol.

EUR/USD hit a weekly high of 1.1769, despite tepid European data, with the Union’s unemployment rate, rising for a fifth consecutive month. The GBP/USD pair ended the day with modest losses, weighed by Brexit headlines.

US data was mixed but still indicated growth. That backed equities in detriment of the greenback, which ended the day with uneven losses against most major rivals.

The USD/JPY pair was unable to attract investors, and it remained stuck around 105.50/60. The Japanese government reported that they would start working on a new stimulus aid package by year's end and it will be submitted to parliament in January.

Gold settled at around $1,910.00 a troy ounce, amid prevalent dollar’s weakness. Crude oil prices, on the contrary, plummeted amid mounting concerns about global demand within the pandemic context. WTI fell to $37.60 a barrel, recovering some ground ahead of the close and settling at around $38.60 a barrel.

Commodity-linked currencies were among the strongest, with the Canadian dollar sharply up against the greenback, despite weakening oil prices.

Coronavirus. European authorities are cautiously optimistic, as the number of new daily cases seems to have stabilized. Restrictions, however, remain in several countries heading into the flu season.

The focus shifts to the US monthly Nonfarm Payroll report, expected to show a modest increase in jobs creation in September.

Bitcoin, Ethereum and XRP plummet after CFTC accused BitMEX of evading U.S. regulations

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD remains above 0.7200 after China's trade data

AUD/USD sits above 0.7200 in the Asian session on Tuesday, near its highest level since May 14. The US Dollar stays under pressure as a rallying Japanese Yen outweighs support from hawkish Fed bets and geopolitical tensions. This, along with firming expectations for another RBA rate hike later this month, acts as a tailwind for the Aussie. However, mixed China trade balance data keep the pair restricted.

USD/JPY stabilizes at around 154.00 as markets assess BoJ outlook

USD/JPY fluctuates at around 154.00 in the American session on Tuesday after rebounding from the six-month low it touched below 153.00 earlier in the day. Nevertheless, the upside attempts resemble technical corrections for now as Japan's upbeat wage growth data and Q2 GDP revision cement bets on a BoJ rate hike next week and continue to support the Japanese Yen.

Gold holds around $4,400, but for how long?

Gold (XAU/USD) remains on the back foot during American trading hours on Tuesday, even as the US Dollar (USD) remains on the defensive. Rising Oil prices and expectations of a Federal Reserve (Fed) rate hike weigh on the precious metal. At the time of writing, XAU/USD trades around $4,400 after reaching an intraday high near $4,443.

XRP ticks up as bullish derivatives, EMA support signal breakout

Ripple (XRP) is grinding upward and getting closer to a short-term breakout above $1.40 on Tuesday. This uptick follows the remittance token's defense of support at $1.38, after a short-lived attempt to breach selling pressure at $1.50 last week.

Europe in focus: September 2026

Six major net contributors demanded substantial cuts to the European Commission’s proposed 2028–2034 EU budget. Germany, Denmark, the Netherlands, Austria, Finland and Sweden issued a joint position on 27 August calling for the nearly €2 trillion proposal to be reduced by several hundred billion euros and rejecting additional common EU borrowing.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.