Forex Today: Hopes for a small trade deal boosts mood, EUR/USD digests ECB whipsaw, US consumer in focus

Yohay Elam FXStreet

Here is what you need to know on Friday, September 13:

US President Donald Trump has said that he prefers a full deal with China rather than an interim deal. Nevertheless, the idea of a US-Sino accord that would include lower tariffs is underpinning markets. US yields and USD/JPY are on the rise.
EUR/USD is holding up its ground above 1.1050 after a whipsaw on Thursday. The European Central Bank cut interest rates by 10 basis points and announced Quantitative Easing worth €20 billion per month from November. President Mario Draghi called governments to do more.
Brexit: House of Commons Speaker John Bercow has warned prime minister Boris Johnson that ignoring the law avoiding a hard Brexit is akin to robbing a bank. In the meantime, the European Union is set to grant the UK an extension according to a leaked document – contradicting tough talk from several leaders. The Times reported that the Northern Irish DUP party may be ready to cede ground on specific regulation for the province, opening the door to a compromise. The DUP denied it.
The US consumer is in the limelight now, with retail sales for August and consumer sentiment for September.
Cryptocurrencies have consolidated their minimal gains while gold is struggling around $1,500.

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.

GBP/USD slides below 1.3250 after failing to break through 23.6% Fibo

The GBP/USD pair meets with a fresh supply during the Asian session on Wednesday and moves away from a nearly two-week high around the 1.3275 region, touched the previous day. Spot prices currently trade around the 1.3235 zone, down 0.20% for the day, as traders look to speeches from Bank of England Governor Andrew Bailey and Federal Reserve Chair Kevin Warsh for a fresh impetus.

EUR/USD stays offered, breaks below 1.1400…again

EUR/USD adds to Tuesday’s slight losses and drops below the 1.1400 yardstick in the latter part of Wednesday’s NA session. The pair’s decline comes in response to the persistent recovery in the US Dollar, which seems to have met extra support following the cautious tone from Fed’s Warsh in his comments at the ECB Forum.

Gold recovers but sellers hold the grip

Gold keeps the bullish performance in place on Wednesday, although is now giving away part of its earlier advance past the $4,100 mark per troy ounce. The precious metal’s marked rebound comes despite the US Dollar’s bid bias, higher US Treasury yields across the curve and positive headlines from the Middle East.

Dogecoin vs Shiba Inu: DOGE and SHIB start July with similar setups

The cryptocurrency market shows subtle signs of rebounding on Wednesday after facing intense headwinds over the past few weeks, largely attributed to geopolitical tensions, macroeconomic uncertainty and risk-averse sentiment. Dogecoin (DOGE) and Shiba Inu (SHIB) are holding above pivotal support levels at $0.0700 and $0.0000040, respectively, suggesting investors are ready to reengage.

Warsh stays on message as inflation remains the Fed's top priority

At the ECB Forum in Sintra, Fed Chair Kevin Warsh largely followed the script, offering little to change the market’s current view on monetary policy.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.