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.

Bitcoin Price Prediction: BTC recent 3% breakout could be just the beginning

Author

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.

GBP/USD drops to fresh weekly low below 1.3400

GBP/USD turns south in the second half of the day on Tuesday and trades at a fresh weekly-low below 1.3400 as the Middle East uncertainty causes investors to adopt a cautious stance. Earlier in the day, the data from the UK showed that the Unemployment Rate remained at 4.9% in the three months to May, compared with expectations of 5%, but failed to support the British Pound.

EUR/USD keeps range above 1.1400 after German ZEW

EUR/USD struggles to find direction and fluctuates in a narrow channel above 1.1400 on Tuesday, as the US Dollar (USD) stabilizes following Monday's rebound. The uncertainty around the US-Iran conflict limits the pair's upside but traders refrain from taking large positions ahead of the European Central Bank policy announcements on Thursday, which could drive the Euro's near-term valuation.

Gold clings to moderate gains above $4,050

Gold gains traction following Monday's choppy action and advances toward $4,100 on Tuesday. However, the uncertainty surrounding the conflict in the Middle East and growing expectations for a hawkish Federal Reserve policy outlook make it difficult for the precious metal to gather bullish momentum in the near term.

Bitcoin extends advance as ETF inflows, Iran war mediators' proposal lift risk mood

Bitcoin extends its gains, trading above $65,800 after closing above the key technical hurdle the previous day. The bullish price action is further supported by the return of institutional demand, with spot Exchange Traded Funds continuing their inflows on Monday. In addition, the renewed hopes for peace between the US and Iran have lifted risk sentiment, providing an additional tailwind for the Crypto King.

Buy the dip on the Dow Jones and S&P? Forex Trading Gold descending triangle

Trading during a war, a pandemic, during trade disputes, and other geopolitical events, especially when some major players are sociopathic, can be quite challenging. The Iran war is no exception. The Iran war is no exception.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.