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Forex Today: uncertainty rules ahead of US critical events
Here is what you need to know Monday, October 28th:
- The greenback appreciated at the end of the week, in spite of soft US data. Risk-related sentiment amid Brexit uncertainty led the way. Speculative interest preferred to take positions out of the table. EUR/UD lost the 1.1100 level, and has room to extend its decline.
- The Sterling retreated from its multi-month high against the dollar, although the movement could be considered corrective, as GBP/USD settled around the 23.6% retracement of its latest bullish run. The market believes that the UK would not crash out of the EU without a deal, although it ignores what’s next. A possible election, a shortened extension, PM Johnson calling for a hard-Brexit anytime, are among the possibilities.
- This week, the US will publish the preliminary estimate of Q3 GDP and the Nonfarm Payroll monthly report, while the Fed will have a monetary policy meeting. Investors would likely remain cautious ahead of these events starting next Wednesday.
- The Bank of Japan will also have a monetary policy meeting this week. Ahead of it, the holds neutral against the dollar, both demanded amid their safe-haven condition.
- Cryptocurrencies soared, with BTC/USD retreating from above 10,000.00 on Sunday. Headlines during the weekend indicate that China has passed a new law regulating the crypto market starting early January.
- Gold recover the 1,500 level amid demand for safety, a better choice than the dollar or the yen.
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FXStreet Team
FXStreet
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