Forex Today: Brexit drama on its final stages

FXStreet Team FXStreet

Here is what you need to know Friday, October 18th:

The world revolved around Brexit once again. The Pound soared on news indicating that an agreement was reached between EU´s and UK’s representatives. The initial headlines suggested that the Northern Irish Democratic Unionist Party (DUP) supported the deal, but the party later formally stated that it would vote against it, pushing the Sterling lower. Still, the EU27 approved the withdrawal agreement and the political declaration. The UK Parliament will decide on it next Saturday in a special session.
Most major pairs got carried away by Brexit optimism. The EUR/USD pair surged to 1.1140, holding on to gains, despite the positive mood faded.
The AUD/USD pair surged to a one-month high after a mixed employment report which brought a tiny light of hope about the jobs’ sector.
Crude oil prices edged higher, despite the EIA reporter a larger-than-anticipated build in US stockpiles of 9.281M.
Wall Street rallied at the opening amid solid earnings reports, but gave up most of its intraday gains ahead of the close, as the positive mood faded.

Author

FXStreet Team

FXStreet

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.