Forex Today: Brexit hopes boosted Pound and mood

FXStreet Team FXStreet

Here is what you need to know Wednesday, October 16th:

Optimism re-surged in the US afternoon, on news indicating prospects of a draft Brexit deal. Safe-havens, dollar included, edged lower. GBP/USD flirted with 1.2800 retaining the bullish potential despite politicians tried to cold down the headline.
By the end of the day, news indicated that PM Johnson will address a meeting of the 1922 committee of Conservative backbenchers at 7.30 pm local time Wednesday. He will brief his cabinet earlier at 4 pm.
The EUR/USD pair surged on the back of Brexit news, but gains remained subdued. The pair briefly pierced 1.1000 before recovering to the 1.1040 region.
In the trade front, the Chinese Foreign Ministry said that the country will speed up orders for American agricultural products, adding that both countries are “on the same page and have no difference in the stance on reaching a trade deal,” adding to the positive sentiment.
AUD under pressure despite the better market mood, as RBA Meeting’s Minutes showed that policymakers are prepared to ease monetary policy further if it’s needed to support the economy, even knowing that lower interest rates may create a housing bubble and end backfiring.
Safe-havens yen and gold edged sharply lower.

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FXStreet Team

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