Forex Today: Caution persists, majors looking for a catalyst

FXStreet Team FXStreet

Here is what you need to know on Wednesday, October 28:

Major pairs continued trading in tight, familiar ranges. The market motors from last week, a US stimulus package and Brexit talks, have been set aside, as those continue without progress.

The pandemic is once again taking center stage. The WHO said that Europe is now the new epicenter, as most countries are reporting daily record cases, above those reported in March and April. Market talks indicated that some governments are considering nationwide lockdowns. French President Macron will address the nation on Wednesday on the issue. Also, Dutch Prime Minister Rutte said that is too early to decide if more measures are needed, but added that a total lockdown is being considered. Meanwhile, Spain declared the state of emergency, while Italy urged people to stay home.

US data was upbeat, with Durable Goods Orders sharply up in September, yet not enough to trigger some dollar’s demand.

Equities remained under selling pressure, although US indexes ended the day mixed, not far from their opening levels. US Treasury yields edged lower for a third consecutive day.

The AUD/USD pair hovers around 0.7130, lacking directional strength. Australian Q3 inflation figures to be out early Wednesday may spur some action around the pair.

The USD/CAD pair closed in the red, despite crude oil prices got to bounce, ending the day at $39.40 a barrel.

Gold posted a modest intraday advance and finished the day around $1,908.00 a troy ounce.

Crypto enthusiasts grow “extremely greedy” suggesting a major correction is underway

Author

FXStreet Team

FXStreet

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.