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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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.

AUD/USD remains above 0.7200 after China's trade data

AUD/USD sits above 0.7200 in the Asian session on Tuesday, near its highest level since May 14. The US Dollar stays under pressure as a rallying Japanese Yen outweighs support from hawkish Fed bets and geopolitical tensions. This, along with firming expectations for another RBA rate hike later this month, acts as a tailwind for the Aussie. However, mixed China trade balance data keep the pair restricted.

USD/JPY stabilizes at around 154.00 as markets assess BoJ outlook

USD/JPY fluctuates at around 154.00 in the American session on Tuesday after rebounding from the six-month low it touched below 153.00 earlier in the day. Nevertheless, the upside attempts resemble technical corrections for now as Japan's upbeat wage growth data and Q2 GDP revision cement bets on a BoJ rate hike next week and continue to support the Japanese Yen.

Gold holds around $4,400, but for how long?

Gold (XAU/USD) remains on the back foot during American trading hours on Tuesday, even as the US Dollar (USD) remains on the defensive. Rising Oil prices and expectations of a Federal Reserve (Fed) rate hike weigh on the precious metal. At the time of writing, XAU/USD trades around $4,400 after reaching an intraday high near $4,443.

XRP ticks up as bullish derivatives, EMA support signal breakout

Ripple (XRP) is grinding upward and getting closer to a short-term breakout above $1.40 on Tuesday. This uptick follows the remittance token's defense of support at $1.38, after a short-lived attempt to breach selling pressure at $1.50 last week.

Europe in focus: September 2026

Six major net contributors demanded substantial cuts to the European Commission’s proposed 2028–2034 EU budget. Germany, Denmark, the Netherlands, Austria, Finland and Sweden issued a joint position on 27 August calling for the nearly €2 trillion proposal to be reduced by several hundred billion euros and rejecting additional common EU borrowing.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.