Forex Today: political turmoil continues

FXStreet Team FXStreet

Here is what you need to know Monday, October 7th:

During the weekend, a second whistle-blower in the case of US President Trump’s dealing with Ukraine has come forward. He’s said to have first-hand knowledge of the allegation listed by the previous one. Could trigger some risk-off at the weekly opening.
US Nonfarm Payroll report came in mixed, consistent with economic expansion. Wall Street rallied with the news, on mounting hopes the US Federal Reserve will cut rates one more time before year-end.
EUR/USD capped by sellers around 1.1000, recovery from multi-year lows remains corrective.
Brexit weighs on Pound. The EU Parliament President, Donald Tusk, rejected UK PM Boris Johnson’s Brexit plan, saying that it’s not remotely acceptable. Ireland has also rejected the agreement, as it implies borders within the island. GBP/USD weakening.
The US and China will resume trade talks this week.
US Treasury yields closed the week firmly lower, as uncertainty underpins demand for safe-haven assets.
Cryptocurrencies under pressure, as BTC/USD settled below 8,000.00.

Author

FXStreet Team

FXStreet

EUR/USD struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

The weekender: When software turns the blade on itself

Autonomous AI does not just threaten trucking companies and call centers. It challenges the cognitive toll booths that legacy software has charged for decades. This is not a forecast. No one truly knows the end state of AI.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.