Forex Today: Risk appetite likely to be short-lived

FXStreet Team FXStreet

Here is what you need to know on Monday, October 12:

Hopes for a US coronavirus stimulus package led the way at the end of the week. The greenback came under strong selling pressure, ending the week with sharp losses against most major rivals. White House advisor Larry Kudlow said that US President Donald Trump proposed a $1.8 trillion stimulus package that includes checks to individuals and an extension of the Paycheck Protection Program.

Wall Street closed in the green, although gains were modest, as certain caution prevailed.

Headlines published over the weekend, however, may pour some cold water on the market’s upbeat mood, as House Speaker Nancy Pelosi and US Treasury Secretary Steven Mnuchin talked over the weekend, but were unable to clinch a deal. The mood can turn sour at the weekly opening, although a holiday in the US and Canada may result in limited market’s activity.

In the Brexit front, yet another week ended without progress. UK PM Boris Johnson set October 15 as the last day to achieve a trade deal and menaced to walk away from the negotiation table if a deal is not done by then. Over the weekend, UK PM Johnson spoke with French President Macron, asking for intensive talks to “bridge significant gaps” remaining.

A steep rise in coronavirus cases in Europe spurs concerns. France reported a record of 27K new cases, while Spain declared an emergency state in Madrid. In Germany, infections jumped by the most since April.

Gold surged on dollar’s sell-off, ending the week around $1,930 a troy ounce its highest for October.

Crude oil prices were boosted at the end of the week by soaring equities, but also amid a strike from Norwegian oil firms. The black gold retreated ahead of the weekly close as Norway oil workers reached a deal to end the strike.

Ripple Technical Analysis: XRP bears rear ugly heads, upside bias losing momentum?

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.