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Forex Today: risk aversion gave the dollar a lift
Here is what you need to know Friday, October 25th:
- ECB’s Mario Draghi, finished his eight years mandate with discretion. The central bank left the monetary policy unchanged, as expected, and reaffirmed the goodness of monetary stimulus. Draghi refused to make comments about the future of the ECB and Mrs. Lagarde. Preliminary Markit October PMI showed that the economic slowdown extended into Q4. EUR/USD struggling to hold above 1.1100.
- The GBP/USD pair fell sub-1.2800, on headlines indicating that UK PM Johnson will table a motion for a snap election on December 12. Johnson stated that the way to get Brexit done is to Parliament agreeing with the December election and that MPs could study the Brexit Bill before the dissolution, which would take place early November. Labour and other opposition parties are against it, and good prefer to have first a guarantee against a no-deal Brexit. GBP/USD fell to 1.2788, bouncing afterward to 1.2850 price zone.
- Gold soared on demand of safety, recovering beyond the 1,500.00 threshold, by the end of the day. The yen lagged, unable to move against the dollar away from the 108.50/60 price zone.
- Cryptocurrencies consolidated at the lower end of their Wednesday’s range.
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FXStreet Team
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