Forex Today: Tensions mount as central banks take center stage

Valeria Bednarik FXStreet

What you need to know on Wednesday, October 27:

The American dollar ended the day mixed, particularly stronger against its European rivals. The EUR/USD pair is down to the lower end of its weekly range, trading in the 1.1590 price zone, while GBP/USD settled around 1.3760, getting additional pressure from European Commissioner for the Internal Market Thierry Breton, who said on Tuesday that Brexit has resulted in an "economic catastrophe" for the UK.

US CB Consumer Confidence unexpectedly bounced in October, printing at 113.8 from an upwardly revised 109.8. According to the official report, “the proportion of consumers planning to purchase homes, automobiles, and major appliances all increased in October—a sign that consumer spending will continue to support economic growth through the final months of 2021.”

Crude oil prices started the day on the back foot but managed to end the day with gains. WTI settled t $84.60 a barrel. On the other hand, gold edged lower and settled around $1,795 a troy ounce.

The DJIA and the S&P 500 reached all-time highs ahead of the opening, although US indexes retreated, to end the day mixed around their opening levels.

US Treasury yields remained subdued, with the benchmark on the 10-year note down to 1.61%.

Australia will publish Q3 inflation data on Wednesday, although expectations point to easing price pressures.

The Bank of Canada is having a monetary policy on Wednesday, with the Bank of Japan and the European Central Bank set to announce their decisions on Thursday. The BOC is expected to taper anticipating the Federal Reserve.

Top 3 Price Prediction Bitcoin, Ethereum, XRP: Small correction ahead of cryptos before next leg up

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD looks weaker near 1.3500

GBP/USD adds to Monday’s pessimism and puts the 1.3500 support to the test on Tuesday. Cable’s marked pullback comes in response to extra gains in the Greenback while disappointing UK jobs data also collaborate with the offered bias around the British Pound.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

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