Forex Today: Risk appetite likely to be short-lived

FXStreet Team FXStreet

Here is what you need to know on Monday, October 12:

Hopes for a US coronavirus stimulus package led the way at the end of the week. The greenback came under strong selling pressure, ending the week with sharp losses against most major rivals. White House advisor Larry Kudlow said that US President Donald Trump proposed a $1.8 trillion stimulus package that includes checks to individuals and an extension of the Paycheck Protection Program.

Wall Street closed in the green, although gains were modest, as certain caution prevailed.

Headlines published over the weekend, however, may pour some cold water on the market’s upbeat mood, as House Speaker Nancy Pelosi and US Treasury Secretary Steven Mnuchin talked over the weekend, but were unable to clinch a deal. The mood can turn sour at the weekly opening, although a holiday in the US and Canada may result in limited market’s activity.

In the Brexit front, yet another week ended without progress. UK PM Boris Johnson set October 15 as the last day to achieve a trade deal and menaced to walk away from the negotiation table if a deal is not done by then. Over the weekend, UK PM Johnson spoke with French President Macron, asking for intensive talks to “bridge significant gaps” remaining.

A steep rise in coronavirus cases in Europe spurs concerns. France reported a record of 27K new cases, while Spain declared an emergency state in Madrid. In Germany, infections jumped by the most since April.

Gold surged on dollar’s sell-off, ending the week around $1,930 a troy ounce its highest for October.

Crude oil prices were boosted at the end of the week by soaring equities, but also amid a strike from Norwegian oil firms. The black gold retreated ahead of the weekly close as Norway oil workers reached a deal to end the strike.

Ripple Technical Analysis: XRP bears rear ugly heads, upside bias losing momentum?

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FXStreet Team

FXStreet

EUR/USD off highs, back to 1.1850

EUR/USD loses some upside momentum, returning to the 1.1850 region amid humble losses. The pair’s slight decline comes against the backdrop of a marginal advance in the US Dollar as investors continue to assess the latest US CPI readings.

GBP/USD advances to daily tops around 1.3650

GBP/USD now manages to pick up extra pace, clinching daily highs around 1.3650 and leaving behind three consecutive daily pullbacks on Friday. Cable’s improved sentiment comes on the back of the inconclusive price action of the Greenback, while recent hawkish comments from the BoE’s Pill also collaborates with the uptick.

Gold surpasses $5,000/oz, daily highs

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The yellow metal’s upside is also propped up by the lack of clear direction around the US Dollar post-US CPI release.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.