Forex Today: Dollar still pressured, coronavirus concerns weigh

FXStreet Team FXStreet

Here is what you need to know on Tuesday, October 13:

The greenback appreciated in slow motion at the weekly opening but ended a dull Monday down against most major rivals.

China set the yuan fixing at 6.7126, weaker than expected, while the PBOC lowered the FX risk reserve ratio to zero. The country “unveiled a new comprehensive reform plan for Shenzhen,” giving local authorities there a “more direct and greater say in business” in areas such as carrying out market-based economic reforms. Asian and European indexes found mild-support in such headlines.

US futures advanced, with the Nasdaq Composite flirting with all-time highs, ignoring the fact that US leaders were once again unable to agree on a coronavirus stimulus package.

The number of new coronavirus cases in Europe continues on the rise. Germany imposed new restrictions, while the UK announced a three-tier system of restrictions for England with Liverpool region under strictest tier 3, which means household mixing will be banned, and all pubs and bars will be closed, alongside other indoors leisure centres. The lowest level, that covers most of England, includes a curfew for pubs at 10 pm and limited household mixing.

BOE’s members were on the wires this Monday, with Haskel saying that the central bank keeps an “absolutely open mind” on the suitability of negative rates. Governor Bailey added later that they are not thinking about negative rates in terms of a policy decision now, also indicating that they are not near addressing whether they should use them.

The EUR was the worst performer against the greenback, with EUR/USD stuck to 1.18. The Pound advanced despite discouraging local news, with GBP/USD nearing the 1.3100 level.

Gold remains stable above $1,920 a troy ounce amid limited trading. Crude oil prices edged lower, on news that production resumed in Libya’s largest oilfield.

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EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.