Forex Today: US stimulus talks and Trump discharged fueled optimism
Here is what you need to know on Tuesday, October 6:
Risk-appetite led the way this Monday after a tense weekend with the news feeds flooded with Trump’s health-related headlines. Ahead of Wall Street’s close, the US President announced he would be leaving hospital later in the day, as he feels “20 years younger.” Trump received a series of experimental drugs, and of course, had an army of doctors taking care of him. Meanwhile, the number of new contagions among White House staff skyrocketed.
Hopes that the US Congress would clinch a deal on the next round of fiscal stimulus also underpinned the market’s sentiment. Treasury Secretary Mnuchin and House Speaker Pelosi were reported to have a phone call to discuss the matter. They will continue negotiating this Tuesday.
Market players were also confident that the UK and the EU might agree on a post-Brexit trade deal after authorities from both sides agreed to extend negotiations until month-end. This Monday, they start a two-week round of talks, aimed to find some common ground on fisheries rights and a level playing field, the two most relevant issues.
The EUR/USD pair flirted with 1.1800 while GBP/USD neared 1.3000, as European currencies were the best performers against the greenback. The pairs pulled back a bit ahead of the close but held to most of their intraday gains.
The Canadian dollar posted a modest intraday advance, helped by rising crude oil prices. The Aussie, however, remained within familiar levels, ahead of the RBA’s monetary policy decision.
Wall Street closed with substantial gains, with the S&P reaching its highest in almost a month.
Gold surged amid a weaker greenback, and hopes of more stimulus coming from the US. The bright metal settled above $1,910 a troy ounce, its highest settlement in over two weeks. Crude oil prices recovered on the back of rallying equities, trimming Friday’s losses. WTI ended at $39.30 a barrel.
Ripple Price Prediction: XRP only facing one last barrier towards $0.30
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FXStreet Team
FXStreet
