Forex Today: speculative interest turned cautious

FXStreet Team FXStreet

Here is what you need to know Tuesday, October 15th:

Holidays in Japan, the US, and Canada kept most major pairs within familiar levels, although the greenback recovered some ground, amid decreasing optimism on the main two fronts, the US-China trade relationship and Brexit.
US-China established a trade truce, although it’s still unclear whether or when the next round of tariffs will be applied. However, and after US President Trump announced the success of “phase 1” in a trade deal, investors remain mildly hopeful. China requested more talks next month before signing a deal.
Brexit: reports suggested that EU representatives fear that Johnson won’t be able to pass Brexit in Parliament, while Ireland’s Foreign Minister Simon Coveney said that, while a deal is possible, though issues remain. Talks were making slow progress, according to politicians from both sides. Meanwhile, the queen offered a speech to Parliament, in which she stated that the government’s priority is to secure the UK’s departure from the EU on October 31^st.
Stocks posted modest intraday gains, with activity subdued amid the mentioned holiday. Crude oil prices edged lower.
Safe-haven assets posted modest intraday gains but trimmed most of them ahead of the close.

Author

FXStreet Team

FXStreet

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.