Forex Today: Caution persists, majors looking for a catalyst

FXStreet Team FXStreet

Here is what you need to know on Wednesday, October 28:

Major pairs continued trading in tight, familiar ranges. The market motors from last week, a US stimulus package and Brexit talks, have been set aside, as those continue without progress.

The pandemic is once again taking center stage. The WHO said that Europe is now the new epicenter, as most countries are reporting daily record cases, above those reported in March and April. Market talks indicated that some governments are considering nationwide lockdowns. French President Macron will address the nation on Wednesday on the issue. Also, Dutch Prime Minister Rutte said that is too early to decide if more measures are needed, but added that a total lockdown is being considered. Meanwhile, Spain declared the state of emergency, while Italy urged people to stay home.

US data was upbeat, with Durable Goods Orders sharply up in September, yet not enough to trigger some dollar’s demand.

Equities remained under selling pressure, although US indexes ended the day mixed, not far from their opening levels. US Treasury yields edged lower for a third consecutive day.

The AUD/USD pair hovers around 0.7130, lacking directional strength. Australian Q3 inflation figures to be out early Wednesday may spur some action around the pair.

The USD/CAD pair closed in the red, despite crude oil prices got to bounce, ending the day at $39.40 a barrel.

Gold posted a modest intraday advance and finished the day around $1,908.00 a troy ounce.

Crypto enthusiasts grow “extremely greedy” suggesting a major correction is underway

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FXStreet Team

FXStreet

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.