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 deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.