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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Bears hold the grip, critical challenge at 1.2000

The greenback firmed up at the end of the week, closing it with substantial gains against most major rivals. Renewed coronavirus concerns and poor macroeconomic data spurred risk-off. EUR/USD is firmly bearish.


GBP/USD: Further restrictions in the UK may hit the pound

The GBP/USD pair trimmed most of its weekly gains on Friday and settled in the 1.3580 price zone, amid risk-off fueling dollar’s demand. UK GDP contracted by less than anticipated in November, Industrial Production plunged.


Gold: Further decline toward $1,800 remains on the cards

Gold failed to stage a convincing rebound this week. After losing more than 2% in the previous week, the XAU/USD pair extended its slide on Monday and touched its lowest level since early December at $1,817. 

Gold news

Darkest fefore dawn

The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News