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

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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD struggles to pull away from multi-week lows, holds near 1.1270

EUR/USD stays deep in the negative territory near 1.1270 during the American trading hours on Tuesday as the greenback continues to outperform its rivals. The data from the US showed that the CB Consumer Confidence Index declined to 113.8 in January from 115.2 in December. 


GBP/USD consolidates daily losses near mid-1.3400s

GBP/USD fell to its weakest level in three weeks below 1.3450 on Tuesday and seems to be having a difficult time staging a convincing rebound. Safe-haven flows continue to dominate the financial markets following the mixed data releases from the US.


Gold hits levels above $1850 for the first time in two months and retreats

A quick drop in US yields boosted XAU/USD that jumped from $1840 to $1853, reaching the highest level since November 19. It then pulled back all the way to $1840 and now is approaching the $1850 area again.

Gold News

Ethereum shifts away from ETH 2.0

Ethereum will be moving away from ETH 1.0 and ETH 2.0 as the protocol undergoes significant changes. Core developers on the network are referring to the stages on the blockchain as the “execution layer” and “consensus layer.”

Read more

Activision Blizzard dips lower ahead of Microsoft earnings call

Activision Blizzard could see its games thrust into the mainstream spotlight. Microsoft is set to release its FY2022 Q2 earnings on Tuesday after the close.

Read more