Forex Today: Progress on US stimulus ahead of the presidential debate

FXStreet Team FXStreet

Here is what you need to know on Friday, October 23:

The US Stimulus saga continues. House Speaker Nancy Pelosi said Democrats are “just about there” on a coronavirus stimulus deal with the White House, but also warned about a bill may take some time to pass Congress. The greenback recovered some ground against its major rivals, while Wall Street closed in the green. Government bonds eased and US Treasury yields reached fresh multi-week highs.

The EUR/USD pair eased towards 1.1820, while the GBP/USD pair settled below 1.3100. Commodity-linked currencies posted modest gains against its American rival.

EU’s chief negotiator Michel Barnier arrived in London to resume trade talks, after a one-week impasse, providing support to the pound. Barnier and his British counterpart, David Frost, are set to hold intensive talks, although both acknowledged “significant gaps” remain the most difficult areas, such as fishing rights and a level playing field, as per EU demands.

Gold retreated on the back of dollar’s strength, ending the day at $1,904 a troy ounce. Crude oil prices recovered some ground with WTI ending the day at $41.60 a barrel.

The focus shifts to the US presidential debate to take place in the Asian session.

Cryptocurrencies Price Prediction: Bitcoin, Ripple & Chainlink

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EUR/USD tests 1.1800 barrier above 50-day EMA

EUR/USD gains ground after three days of losses, trading around 1.1790 during the Asian hours on Thursday. The 14-day Relative Strength Index momentum indicator at 47 (neutral) reflects easing momentum. The RSI below 50 keeps momentum balanced and could limit follow-through.

GBP/USD struggles near four-week low vs. USD, below 1.3500 amid BoE rate cut bets

The GBP/USD pair is seen consolidating its weekly losses registered over the past three days and oscillating in a narrow range near a four-week trough, touched during the Asians session on Thursday. Spot prices currently trade just below the 1.3500 psychological mark and seem vulnerable to slide further.

Gold consolidates below $5,000 amid geopolitical risk, hawkish FOMC Minutes

Gold extends its sideways consolidative price move through the Asian session on Thursday and remains below the $5,000 psychological mark as traders seem hesitant amid mixed cues. The US Dollar preserves its strong gains to over a one-week high in the wake of somewhat hawkish Minutes of the US Federal Reserve’s January monetary policy meeting.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.