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

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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.

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