Forex Today: Brexit in the EU's hands, EUR/USD may struggle with Draghi one last time, Bitcoin battered
|Here is what you need to know on Thursday, October 24:
- Brexit: GBP/USD has stabilized around 1.29 as the EU is considering a delay to the UK's exit. France reportedly wants only a short delay from October 31 to November 15, while other countries tend to approve a postponement to January 31, 2020 – as stated in Britain's extension request. A long delay will likely result in snap elections while a short one in another push to complete legislation. Brussels will likely indicate its decision on Friday.
- Mario Draghi, President of the European Central Bank, will preside over his last decision at the helm. He will likely defend his eight-year tenure, and mostly his last decision to cut rates and restart the bond-buying scheme. If he justifies the stimulus by painting a dark picture of the euro-zone economies, EUR/USD may struggle. Preview: Draghi's defense of his legacy may drag EUR/USD down
- Ahead of the ECB's decision, preliminary euro-zone Purchasing Managers' Indexes for October will provide an update on the economy. See Three reasons why EUR/USD may fall without waiting for Draghi
- Several other countries will announce their rate decisions today, with Turkey standing out. US President Donald Trump announced that he is lifting sanctions after Ankara committed to a permanent ceasefire in Northern Syria. The CBRT is set to cut interest rates. USD/TRY volatility is set to remain high.
- The market mood has somewhat improved, with the safe-haven USD, JPY, and Gold in retreat. US Vice President Mike Pence will deliver a significant speech on China later in the day, and markets will watch it as guidance for trade talks.
- US data: US Durable Goods Orders for September provide an indication for US GDP next week and are set to move markets. Preview: Business spending continues to restrain durable goods. Weekly Unemployment Claims, News Home Sales, and Markit's PMIs are also of interest.
- Cryptocurrencies are licking their wounds at lower ground, with Bitcoin trading below $7,500. Facebook founder Mark Zuckerberg testified on Capitol Hill and defended the social media's Libra cryptocurrency project. He seemed to have failed to convince lawmakers that the project is needed and that it will compete with Chinese initiatives.
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.