Forex Today: Brexit, recession, and “impactful and significant” stimulus

FXStreet Team FXStreet

Here is what you need to know on Monday, September 2nd:

- EUR/USD below 1.1000, despite US data, failed to impress. Comments from ECB’s top official Olli Rehn smashed the EUR as opposed to what Knot said earlier in the week, he said that the central bank should come up with an “impactful and significant” stimulus package in its September meeting, that should exceed investor’s expectations.

- A new round of U.S. tariffs on some Chinese goods is scheduled to take effect on Sunday. Risk-off could take over.

- Over the weekend, Michael Gove, the UK minister in charge of planning for no-deal, insisted that there would be no food shortages in the UK in the case of a hard Brexit, but refused to rule out the possibility that the government could ignore any law passed by parliament to stop a no-deal Brexit, outraging MPs from both sides. Brexit jitters likely to keep Sterling pressured.

- China released the August NBS Manufacturing PMI which fell to 49.5 down from 49.7 previously, and the Non-Manufacturing PMI which improved to 53.8 from 53.7 previously, beating the market’s expectations. China will publish the Caixin Manufacturing PMI, foreseen at 49.8 from 49.9.

- Oil prices came under pressure after the Russian Energy Minister Alexander Novak said that the country’s oil output cuts in August would be slightly below those agreed with OPEC+.

- Gold eased on a better market mood, held above 1,500 as fears about a global economic downturn prevail in the background.

- Cryptocurrencies remained depressed throughout the weekend.

Author

FXStreet Team

FXStreet

EUR/USD stays near 1.1650 with fading momentum

EUR/USD holds ground after five days of losses, trading around 1.1650 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 39 trends lower, confirming fading momentum rather than oversold conditions.

GBP/USD remains below 1.3450, nine-day EMA

GBP/USD remains subdued for the fourth consecutive day, trading around 1.3430 during the Asian hours on Friday. The momentum indicator 14-day Relative Strength Index at 51.9 is neutral, reflecting slower momentum after firm recent readings. An RSI drop back beneath 50 would strengthen the case for a deeper pullback.

Gold edges lower as USD preserves its recent gains ahead of US NFP report

Gold struggles to capitalize on the previous day's goodish rebound from the vicinity of the $4,400 mark and attracts fresh sellers during the Asian session on Friday. The US Dollar preserves its gains registered over the past two weeks and touches a nearly one-month high, undermining the commodity.

Bitcoin, Ethereum and Ripple find key support, reviving rally hopes

Bitcoin, Ethereum, and Ripple steadied above key support levels on Friday after being rejected at mid-week resistance zones. The short-term recovery prospects remain intact if the top three cryptocurrencies by market capitalization hold these support zones.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

Pepe Price Forecast: PEPE risks 100-day EMA fallout as bullish interest fades

Pepe is under extreme selling pressure, trading in the red for the fifth consecutive day, down 1% at press time on Friday. Pepe’s decline following a 72% hike last week suggests a likely profit-booking phase, while on-chain data indicates declining network activity.