Forex Today: Dollar keeps appreciating, UK noise weighs on Sterling

FXStreet Team FXStreet

Here is what you need to know on Wednesday, September 23:

The dollar was the strongest, appreciating against most major rivals. The shared currency was undermined by fears that the economic recovery could take longer than anticipated, as a second wave of coronavirus hits Australia. EUR/USD fell towards the current 1.1700 price zone, its lowest in almost two months.

GBP/USD traded as low as 1.2709 and settled a handful of pips above this last. BOE’s Governor Bailey said that mention of negative rates does not imply their use, giving temporal support to the Pound. Also, EU’s Barnier headed to London for informal trade talks, as Brexit negotiations are reportedly going “a bit” better. The pair started retreating after UK PM Johnson announced new coronavirus-related restrictions, which could last for up to six months. However, he said that this was “by no means a return to the full lockdown of March,” as the aim was to cause the minimum damage to lives and livelihood.

US Federal Reserve Chair, Jerome Powell, testified before Congress. His prepared remarks were released way ahead of the event, which had a limited impact on financial assets. He noted that the US economy has remained resilient and that the banking system has held up well during the ongoing crisis. However, he also said that further economic progress would depend if they can control the virus and most likely will need fiscal support.

EU summit scheduled for later this week has been postponed. Market talks suggest that EU´s President Charles Michel has contracted COVID-19.

Wall Street posted a modest intraday advance, following the lead of its European counterparts. The momentum, however, is quite limited and the risk remains skewed to the downside.

Commodities traded quietly, consolidating around Tuesday’s closing levels. Gold is ending the day at around $1,901.00 a troy ounce.

Crypto market sentiment grows negatively but this could be a bullish sign

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FXStreet Team

FXStreet

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

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.