Forex Today: Brexit dominates it all

FXStreet Team FXStreet

Here is what you need to know on Wednesday, September 4th:

The Pound steal the show, falling against the greenback to 1.1957, its lowest since October 2016 to later recover toward the 1.2100 region. John Bercow, the speaker of the House of Commons, has confirmed that an application for an emergency Brexit debate has been tabled. Meanwhile, PM Johnson stated that he would seek an early election, should rebel Tories continue to opposing to an exit on October 31, adding that he won’t ask Brussels for an extension, even if the Parliament forces him to do so. The Parliament is debating a possible extension and will vote on the matter during Asian trading hours.
US ISM Manufacturing PMI hit hard the greenback during US trading hours, falling into contraction territory for the first time in three years. Yields fell alongside with Wall Street as the report revived concerns about a US recession. The EUR remained among the weakest, ahead of ECB’s monetary policy decision, commodity-linked currencies were the best performers, followed by safe-havens.
Gold neared the multi-year high set in August, stalled at $ 1,550.00 a troy ounce. Crude oil prices trimmed half of their daily gains but remained in a bearish path.
Cryptos remained bullish Bitcoin at 2-week highs.

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FXStreet Team

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EUR/USD off highs, back to around 1.1900

EUR/USD keeps its strong bid bias in place despite recedeing to the 1.1900 zone following earlier peaks north of 1.1900 the figure on Monday. The US Dollar remains under pressure, as traders stay on the sidelines ahead of Wednesday’s key January jobs report, leaving the pair room to extend its upward trend for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.