Forex Today: Trump gives it, Trump takes it away

FXStreet Team FXStreet

Here is what you need to know on Wednesday, October 7:

Major pairs spent most of the within familiar levels this Tuesday, as speculative interest finished digesting US Trump’s coronavirus situation and shifted its focus to other issues, such as Brexit talks and a possible US coronavirus aid package.

The dollar picked up ahead of Wall Street’s close, as risk aversion took over the financial boards, following a tweet from US President Trump. Trump said that House Speaker Nancy Pelosi is "not negotiating in good faith," and called off stimulus negotiations until after the elections. US indexes turned red, while Treasury yields retreated from multi-week highs.

The EUR/USD pair peaked at a fresh 2-week high of 1.1807, despite discouraging comments from ECB’s President, Christine Lagarde, who expressed concerns about the economic recovery, saying that she fears that instead of a V-shaped recovery, the rebound would be shaky.

The GBP/USD pair pierced 1.29 ahead of the close, with the Pound pressured by reports indicating that the EU has no plans to offer concessions to the UK ahead of Boris Johnson’s deadline on October 15. Instead, the Union is ready to extend talks into mid-November and risk a no-deal rather than give up on its demands about a level playing field and fisheries rights.

Commodity-linked currencies suffered the most from late risk aversion. The Aussie was among the worst performer, as Gold prices sunk with the news. The bright metal fell towards $1,890.00 a troy ounce, ending the day nearby.

Crude oil prices were the less affected by Trump’s comments, and were able to close the day with gains. WTI settled around $40.00 a barrel.

Ripple Price Prediction: XRP most recent rejection signals a potential drop to $0.215

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FXStreet Team

FXStreet

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

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Nvidia earnings to influence AI trade and broader market sentiment

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Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.