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

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD remains above 0.7200 after China's trade data

AUD/USD sits above 0.7200 in the Asian session on Tuesday, near its highest level since May 14. The US Dollar stays under pressure as a rallying Japanese Yen outweighs support from hawkish Fed bets and geopolitical tensions. This, along with firming expectations for another RBA rate hike later this month, acts as a tailwind for the Aussie. However, mixed China trade balance data keep the pair restricted.

USD/JPY stabilizes at around 154.00 as markets assess BoJ outlook

USD/JPY fluctuates at around 154.00 in the American session on Tuesday after rebounding from the six-month low it touched below 153.00 earlier in the day. Nevertheless, the upside attempts resemble technical corrections for now as Japan's upbeat wage growth data and Q2 GDP revision cement bets on a BoJ rate hike next week and continue to support the Japanese Yen.

Gold holds around $4,400, but for how long?

Gold (XAU/USD) remains on the back foot during American trading hours on Tuesday, even as the US Dollar (USD) remains on the defensive. Rising Oil prices and expectations of a Federal Reserve (Fed) rate hike weigh on the precious metal. At the time of writing, XAU/USD trades around $4,400 after reaching an intraday high near $4,443.

XRP ticks up as bullish derivatives, EMA support signal breakout

Ripple (XRP) is grinding upward and getting closer to a short-term breakout above $1.40 on Tuesday. This uptick follows the remittance token's defense of support at $1.38, after a short-lived attempt to breach selling pressure at $1.50 last week.

Europe in focus: September 2026

Six major net contributors demanded substantial cuts to the European Commission’s proposed 2028–2034 EU budget. Germany, Denmark, the Netherlands, Austria, Finland and Sweden issued a joint position on 27 August calling for the nearly €2 trillion proposal to be reduced by several hundred billion euros and rejecting additional common EU borrowing.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.