Forex Today: Dollar out of the market’s favor

FXStreet Team FXStreet

Here is what you need to know on Tuesday, October 20:

Investors started the week with an eye on US stimulus back and forth and Brexit, both showing no progress as the US session comes to an end.

Regarding a US coronavirus aid package, US House Speaker Nancy Pelosi set a 48-hour deadline to reach a deal. Hopes on progress were erased mid-US afternoon, amid headlines indicating that Democrats consider big differences persist. The dollar edged lower against most major rivals, recovering unevenly during the American session.

EUR/USD trades around 1.1770, holding on to modest gains. The absence of EU macroeconomic data or other relevant headlines maintained the shared currency afloat.

The GBP/USD pair briefly traded above 1.3000, but later gave up as the UK said that there’s still no basis for trade talks to resume, as the EU has not changed its approach. UK PM Johnson’s spokesman said that the latest talks were “constructive,” and that the negotiation teams will remain in close touch. Still, it seems that the UK is set to leave the Union without a trade deal.

Gold prices remained mute around $1,900 a troy ounce, while crude oil price also held within familiar levels, with WTI near trading near $41.00 a barrel.

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EUR/USD stays in the red near 1.1650 in the European trading hours on Friday. The pair remains undermined by broad US Dollar strength and a cautious market mood. Traders keenly await the US Nonfarm Payrolls data and Supreme Court's ruling on Trump's tariff powers for further direction.

GBP/USD holds lower ground below 1.3450, with eyes on US data

GBP/USD remains subdued for the fourth consecutive day, while trading below 1.3450 in the European session on Friday. Markets remain in a wait-and-see mode before the key US event risks and prefer to hold the US Dollar, which weighs negatively on the pair. The US monthly jobs data and the Supreme Court decision on tariffs are awaited.

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