Forex Today: US-Sino currency pact report lift markets, last-chance saloon Brexit meeting, Bitcoin ignores bad news


Here is what you need to know on Thursday, October 10:

  • Trade headlines are whipsawing markets. The US is considering a pact that includes a currency pact to control the yuan, Chinese buying of agricultural goods, exemptions from sanctions against Huawei, and more. That would be a partial accord. The market mood is more upbeat than in previous days. Commodity currencies are on the rise, the yen is under pressure, while the euro and the pound seem unaffected. China's Vice Premier Liu He will meet US Trade Representative Robert Lighthizer will meet today. Reports that the large Chinese delegation will leave early have been brushed aside. 
  • The Federal Reserve's meeting minutes have shown that several officials pushed for signaling when the rate cut cycle will stop, while others have noted that models have shown higher odds of a recession. The general view that the US economy is doing well while headwinds come from abroad prevails. Consumer Price Index (CPI) figures for September will be closely watched later today.
  • The Financial Times has reported that European Central Bank President Mario Draghi ignored in-house advice when pushing to restart Quantitative Easing. The leak of this advice is part of an ongoing struggle within the ECB to shape future monetary policy under Christine Lagarde, which takes over from Draghi on November 1. The ECB Meeting Minutes are due out today and may reveal further divisions.
  • Brexit: UK Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar will meet later today to try to break the deadlocks. They will try to find a solution that keeps an open border in the Isle of Ireland while taking the UK out of the single market and customs union – a difficult task. The acrimony between the EU and the UK was exposed again on Wednesday as Chief EU Negotiator Michel Barnier said that "we are not in a position to reach a deal." The UK Parliament will sit on Saturday, October 19, just after the critical EU Summit. GBP/USD remains prone to headlines and will likely ignore monthly UK Gross Domestic Product (GDP) figures for August. Bank of England Governor Mark Carney will launch a new £20 banknote later today. 
  • Turkey invaded areas in Northern Syria and clashes with the Kurds. The news keeps the Turkish Lira under pressure while oil prices are shrugging it off.
  • Cryptocurrencies are consolidating their gains with Bitcoin holding above $8,500. Digital coins maintain their strength despite news that the US Securities and Exchanges Commission (SEC) rejecting a request for a Bitcoin Exchange Traded Fund (ETF).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD looks weak after rejection above 1.1100

EUR/USD is sidelined near 1.1080 ahead of the London open. Single currency failed to keep gains above 1.11 on Tuesday despite upbeat German data. The sentiment is quite bearish and a deeper drop to the 100-day average could be in the offing.

EUR/USD News

GBP/USD modestly flat around 1.3050 amid Brexit concerns, USD strength

GBP/USD holds onto the recovery despite looming Brexit uncertainty and broad-based US dollar strength. EU is likely to offer a tough Brexit deal that increases the odds of harsh departure.

GBP/USD News

Bank of Canada Rate Decision Preview: Rewards of Economic patience

Bank of Canada is forecast to leave the overnight rate at 1.75% where is has been since it was increased 25 basis points on October 24th 2018.   The bank makes rate policy decisions at eight fixed date meeting a year. The next is March 4th.

Read more

Gold remains under pressure around $1,551 as US dollar keeps the gains

Gold bounces off the intra-day low of $1,550.40, flashed a few minutes back, to $1,551.30 by the press time of the pre-European session on Wednesday. In doing so, the safe-haven ignores the geopolitical risks emanating from China.

Gold News

USD/JPY rises above 110.00, potential head-and-shoulders on 1H

Risk reset in stocks is boding well for USD/JPY.  The pair may be forming a head-and-shoulders pattern on the hourly chart. The bulls are not out of the woods yet and a break above 110.12 is needed to invalidate lower highs setup on the hourly chart.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures