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.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.