Forex Today: EUR/USD continues digging down, Trump and Johnson struggle, US data eyed

Yohay Elam FXStreet

Here is what you need to know on Friday, September 27:

EUR/USD continues its downward grind, hitting the lowest since May 2017 and nearing 1.09. There is no immediate trigger for the move that seems to be fueled by monetary policy divergence. German import prices dropped by 0.6% in August, worse than expected.
US politics: President Donald Trump's has lashed against the whistle blower that revealed the president sought political dirt on his potential political rival Joe Biden. Trump called the whistleblower – a CIA officer – a "spy." The news somewhat weighs on market sentiment.
UK politics: The EU sees slim chances of achieving any Brexit deal with the UK and even lower chances of getting anything passed through parliament after rancorous scenes in the House earlier this week. GBP/USD has stabilized above 1.23.
Oil prices remain under pressure as Saudi oil output returns to normal.
Japan: Inflation figures for the Tokyo region fell short of expectations with 0.5% on the "core of the core" figure. It adds pressure on the BOJ to cut interest rates.
The US economic calendar is packed with market-moving data. Durable Goods Orders for August are set to rise while Core PCE – the Federal Reserve's preferred gauge of inflation – is expected to accelerate to 1.8% YoY. On Thursday, US economic growth was confirmed at 2% annualized in the second quarter, but the fall in investment was worse than previously reported.
Cryptocurrencies have continued falling with Bitcoin dipping below $8,000.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

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.