Forex Today: Risk-off, Brexit, and a pinch of hope

FXStreet Team FXStreet

Here is what you need to know on Monday, September 28:

Coronavirus concerns continued to weigh upon risk sentiment and backing a dollar’s rally. The American currency closed the week higher against all of its major rivals. EUR/USD traded as low as 1.1611, settling not far above the level. The escalation in the number of coronavirus cases through all Europe and the announcement of restrictive measures in several countries will likely continue to pressure the shared currency.

The GBP/USD pair held above 1.2700, amid renewed hopes for a Brexit trade deal. The EU and the UK will start their ninth round of talks this Tuesday, the final stage of Brexit trade talks ahead of the EU summit that will take place in Brussels in mid-October. CBI head, Carolyn Fairbairn, said during the weekend that a trade deal "can and must be made."

On Saturday, President Donald Trump on nominated Amy Coney Barrett to the Supreme Court, which will boost a conservative majority. The Senate needs to approve the nomination, which will probably result in increased tensions between Republicans and Democrats.

On Friday, Wall Street closed in the green, amid renewed hopes for a coronavirus aid package in the US, after Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi have agreed to restart formal talks towards a new economic relief bill.

The market sentiment, however, remained sour, amid a continued increase in coronavirus cases in the North Hemisphere after Summer ended. France, Spain and the UK have announced fresh restrictive measures as numbers skyrocketed last week.

US Treasury yields remained depressed near weekly lows.

Gold consolidated for a second consecutive day on Friday, ending the week with losses at $1,861 a troy ounce. Crude oil prices found support in rising equities, WTI settled at $40.00 a barrel.

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Lack of weekend love recalls crypto bears

Author

FXStreet Team

FXStreet

EUR/USD: US Dollar comeback in the makes?

The US Dollar stands victorious at the end of another week, with the EUR/USD pair trading near a four-week low of 1.1742, while the USD retains its strength despite some discouraging American data released at the end of the week. The pair edged higher on Friday, after the United States Supreme Court ruled against President Donald Trump's tariffs, although the advance is not enough to change the latest USD flow.

GBP/USD braces for more pain, as 200-day SMA tested

GBP/USD broke the previous week’s consolidation to the downside, as sellers returned with pomp, smashing the major back toward the levels last seen in late January. The pair tested bids below the 1.3450 barrier as the US Dollar strength largely played out throughout the week, while the Pound Sterling stepped back on expectations of divergent monetary policy outlooks between the Bank of England and the US Federal Reserve.

Gold rises to near $5,100 as Trump’s tariffs boost haven demand, US-Iran talks eyed

Gold price edges higher to near $5,095 during the early Asian session on Monday. The precious metal extends the rally amid US President Donald Trump’s tariff threats and uncertainty, boosting safe-haven flows.

Week ahead: Markets brace for heightened volatility as event risk dominates

Dollar strength dominates markets as risk appetite remains subdued. A Supreme Court ruling, geopolitics and Fed developments are in focus. Pivotal Nvidia earnings on Wednesday as investors question tech sector weakness. Yen and aussie diverge; both pound and euro could recoup their losses.

Broadening drivers of growth: Unpacking GDP and looking ahead

This week’s data delivered a familiar theme with an important twist. The U.S. economy continues to be shaped by powerful forces in high-tech and AI-related investment, but recent releases suggest the growth story may finally be broadening. At the same time, trade flows are moving in a less supportive direction, reminding us that not all parts of the economy are pulling in sync.

Ripple bulls defend key support amid waning retail demand and ETF inflows

XRP ticks up above $1.40 support, but waning retail demand suggests caution. XRP attracts $4 million in spot ETF inflows on Thursday, signaling renewed institutional investor interest.