Forex Today: Risk-off leads the way, central banks paving the way for more easing

FXStreet Team FXStreet

Here is what you need to know on Monday, October 19:

The risk-averse sentiment eased just modestly ahead of the weekly close, as US data beat expectations, with Retail Sales and the Michigan Consumer Sentiment Index improving by more than anticipated. Still, the greenback finished the week with gains against most major rivals.

EUR´s weakness was linked to increasing coronavirus cases in the EU, leading to restrictive measures in the Union. Over the weekend, European Central Bank board member Fabio Panetta warned that an ultra-loose monetary policy is more than necessary, amid the risk of a second wave of COVID-19 derailing the economic recovery. EUR/USD settled at 1.1715, ahead of ECB’s head Lagarde speech this Monday.

The British Pound was hit by comments from UK PM Boris Johnson, who said that local business should get ready for an Australia-type deal with the European Union, “given the EU have refused to negotiate seriously.¨ Even further, he said that talks with the EU were over, adding that EU's chief negotiator Michel Barnier should only come to London this week “if he is prepared to discuss all of the issues on basis of a legal text.” Barnier was due in London for talks with his counterpart, David Frost. GBP/USD trades around 1.2900.

The Australian dollar was quite resilient to greenback’s demand but fell after RBA’s Governor Lowe hinted a rate cut in the near-term.

Over the weekend, China passed a law restricting exports of controlled items, allowing the government to act against countries that abuse export controls in a way that harm’s China’s interests. With no explicit mention, the decision is correlated to US measures on Huawei, part of the trade war ongoing between Washington and Beijing.

Gold prices consolidated around $1,900 a troy ounce for a second consecutive week, ending it with modest losses just below the mentioned level. Crude oil prices were also little moved these days, with WTI finishing the week modestly up at $40.70 a barrel.

Bitcoin Price Prediction: BTC grand liftoff to $28,000 – Max Keiser

Author

FXStreet Team

FXStreet

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold drifts higher to near $5,000 on heightened US-Iran tensions

Gold price holds positive ground near $5,000 during the early Asian session on Friday. The precious metal edges higher as escalating tensions between the United States and Iran boost safe-haven demand. Traders brace for the preliminary reading of US Gross Domestic Product for the fourth quarter, the Personal Consumption Expenditures and the S&P Global Purchasing Managers Index data, which are due later on Friday.

Ethereum: Active addresses halt growth as US selling pressure eases

Ethereum network growth has declined after two months of explosive increase. US selling pressure has eased following an improvement in the Coinbase Premium Index. ETH extends its range-bound move below the $2,107 resistance and above $1,740 .

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

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.