Forex Today: Risk-off, Brexit, and a pinch of hope

FXStreet Team FXStreet

Here is what you need to know on Monday, September 28:

Coronavirus concerns continued to weigh upon risk sentiment and backing a dollar’s rally. The American currency closed the week higher against all of its major rivals. EUR/USD traded as low as 1.1611, settling not far above the level. The escalation in the number of coronavirus cases through all Europe and the announcement of restrictive measures in several countries will likely continue to pressure the shared currency.

The GBP/USD pair held above 1.2700, amid renewed hopes for a Brexit trade deal. The EU and the UK will start their ninth round of talks this Tuesday, the final stage of Brexit trade talks ahead of the EU summit that will take place in Brussels in mid-October. CBI head, Carolyn Fairbairn, said during the weekend that a trade deal "can and must be made."

On Saturday, President Donald Trump on nominated Amy Coney Barrett to the Supreme Court, which will boost a conservative majority. The Senate needs to approve the nomination, which will probably result in increased tensions between Republicans and Democrats.

On Friday, Wall Street closed in the green, amid renewed hopes for a coronavirus aid package in the US, after Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi have agreed to restart formal talks towards a new economic relief bill.

The market sentiment, however, remained sour, amid a continued increase in coronavirus cases in the North Hemisphere after Summer ended. France, Spain and the UK have announced fresh restrictive measures as numbers skyrocketed last week.

US Treasury yields remained depressed near weekly lows.

Gold consolidated for a second consecutive day on Friday, ending the week with losses at $1,861 a troy ounce. Crude oil prices found support in rising equities, WTI settled at $40.00 a barrel.

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Lack of weekend love recalls crypto bears

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EUR/USD clings to gains around 1.1800

EUR/USD manages to regain composure and retests the 1.1800 region in quite a positive start to the week. The pair’s bounce follows the US Dollar’s offered stance post-SCOTUS ruling ahead of important US data and Fedspeak on Tuesday.

GBP/USD looks stuck around 1.3500 amid firm gains

GBP/USD is pushing further north on Monday, revisiting the 1.3500 hurdle and beyond. Cable’s uptick is largely being fuelled by the broader softness in the Greenback, amid lingering uncertainty around tariffs.

Gold pops above $5,200, four-week highs

Gold is holding onto its bullish tone on Monday, reaching new multi-week highs just past the $5,200 mark per troy ounce. Fresh trade-war concerns, coupled with rising geopolitical tensions in the Middle East, are keeping demand for the yellow metal well on the rise.

Ethereum Price Forecast: BitMine's holdings reach 4.42 million ETH as Fundstrat predicts 87% win-ratio

Ethereum (ETH) treasury firm BitMine Immersion Technologies (BMNR) scooped up 51,162 ETH last week, marking its largest purchase since December.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.