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Forex Today: Markets see glass half full in trade, Boris bracing collapse in talks, and Powell's speech eyed

Here is what you need to know on Tuesday, October 8:

  • Trade: China is reportedly ready to do a deal with the US on specific topics but refuses to touch the more sensitive ones, leaving them to next year. President Donald Trump expressed his wishes to strike a full deal. The market mood is upbeat with commodity currencies making some gains while major pairs are entrenched in familiar levels. Gold is slipping below $1,500.
  • In a related development, the US blacklisted 28 surveillance companies due to the Chinese abuse of human rights in Xinjiang. The Caixin Services Purchasing Managers' Index dropped more than expected. 
  • Fears for the global economy are growing after the World Bank warns about a synchronized downturn.
  • Brexit: Negotiations continue in Brussels amid low expectations. The Spectator reports that Prime Minister Boris Johnson is preparing for a no-deal. A document laying out the EU's rejection of Johnson's plan was leaked on Monday. The Institute for Fiscal Studies (IFS) has warned that potential government response to a no-deal Brexit could send British debt levels to those seen in the 1960s. Parliament goes on recess later today until the Queen's Speech on Monday.
  • Federal Reserve Chair Jerome Powell will speak late in the day, and he may address monetary policy. Hints if the Fed will cut rates later this month are eyed by markets.
  • The Turkish Lira remains on the back foot with USD/TRY trading above 5.8. The currency was sold off following Trump's decision to allow Turkey to enter areas in northern Syria that are controlled by the Kurds and a potential military clash. 
  • Cryptocurrencies are advancing within recent days' trading ranges.
     

Author

Yohay Elam

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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