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

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD consolidates near 0.7000 as USD stays weak

AUD/USD holds steady above 0.7000 during Thursday’s Asian session, consolidating the previous day’s recovery gains from a near three-week low as the Democratic sweep in the US midterm elections and Iran diplomacy hopes continue to weigh on the US Dollar. Bulls, however, seem hesitant as focus shifts to Friday’s crucial US NFP report.

USD/JPY drifts lower to 158.25 on hawkish BoJ Minutes, weak USD

USD/JPY trades with a negative bias for the second straight day on Thursday as hawkish BoJ Minutes, showing members agreed to keep raising rates, and intervention risks support the Japanese Yen. Meanwhile, US midterm election results and hopes for Iran diplomacy keep the US Dollar depressed as focus shifts to Friday’s US NFP report.

Gold pops to two-week highs near $4,150

Gold builds on Wednesday’s sharp rebound and flirts with the $4,150 mark per troy ounce on Thursday. The precious metal extends it recovery on the back of the irresolute price action of the Greenback and mixed US Treasury yields following the US midterms elections.

TRUMP token hits record low amid mounting selling pressure

Ripple and Stellar extend their recovery as bearish pressure begins to ease for both altcoins. XRP trades above $1.30 after breaking above the upper trendline of a falling channel pattern, while XLM holds above $0.168 and approaches resistance at $0.173. Meanwhile, improving derivatives metrics and strengthening momentum indicators hint at a potential for further recovery.

NFP stress test: Six payrolls releases, measured in daily-loss limits

Friday's US employment report is usually previewed in terms of the headline number and the reaction in the Dollar. For a growing group of traders, those running funded or evaluation accounts with a fixed daily loss limit, there is a more practical question: how much of that limit can the first hour consume, regardless of direction?

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.