Forex Today: Caution ahead of VP debate, dollar bulls fighting back

FXStreet Team FXStreet

Here is what you need to know on Thursday, October 8:

The American dollar gave back part of its Tuesday’s gains this Wednesday, as US President Trump changed his twitter’s rhetoric, following a sharp slump in Wall Street after he announced the end of negotiation with Democrats. The sentiment improved after he said he supports different forms of stimulus, although financial assets’ behavior was uneven.

The FOMC published the Minutes of the latest meeting, which showed that policymakers noted that the incoming data revealed that economic activity was recovering faster than expected from Q2 dip. They also added that their outlook assumed additional fiscal support. The document fell short of triggering a market’s reaction.

US indexes soared and trimmed all risk-averse losses, but the greenback lost some modest ground against its high-yielding rivals. Fed’s Minutes gave support to the dollar.

The EUR/USD pair settled around 1.1760, while the Pound was the worst performer, weighed by Brexit-related news. Rumours suggest that the UK is planning to quit Brexit trade talks if they cannot reach a deal by October 15, the date set by PM Boris Johnson. Also, British Cabinet Minister Michael Gove noted that no-deal preparations are intensifying while UK’s chief negotiator David Frost, said that fisheries are the most difficult issue remaining in negotiations with the EU.

USD/JPY broke higher, helped by rising government debt-yields. The yield on the benchmark 10-year note surged to 0.79% a fresh multi-week high.

Gold remained depressed, ending the day at $1,887 a troy ounce. Crude oil prices spent the day consolidating, with WTI settling just below the 40.00 level.

Bitcoin, Ethereum, and XRP can fall lower, crypto investors not in panic mode just yet

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FXStreet Team

FXStreet

EUR/USD extends slide toward 1.1800 on renewed USD strength

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GBP/USD falls below 1.3550, pressured by weak UK jobs report

GBP/USD remains under heavy bearish pressure and falls toward 1.3500 on Tuesday. The UK employment data highlighted worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.