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