Forex Today: Risk-off to take over amid Trump’s health, no Brexit progress

FXStreet Team FXStreet

Here is what you need to know on Monday, October 5:

The coronavirus extended its claws to the White House. US President Trump announced on Friday that he and his wife Melania contracted COVID-19. As the day went by, the news reported that several of his advisor and staff members also caught the virus. Risk-off lead the way, helping the greenback to recover some ground. Nevertheless, the US currency ended the week with losses against all of its major rivals.

Trump’s health is the main theme ahead of the weekly opening. Weekend reports about his progress were contradictory, although Trump himself published a video late Saturday, indicating that he is feeling a bit better and that he continues to lead the country. The news few days will be critical, and headlines related to his health will likely trigger risk-sentiment related movements across the board.

On Friday, the US published the September monthly employment report, which showed that the country added a measly 661K new jobs, well below expected. The report fueled the dismal mood. The EUR/USD pair finished the day at around 1.1715, holding on to modest weekly gains.

The GBP/USD pair ended the week with substantial gains near 1.2978, amid hopes for a post-Brexit trade deal. Over the weekend, UK PM Boris Johnson and EU Commission President Ursula von der Leyen met and approved a further month of negotiations after agreeing progress has been made but "significant gaps" remain. Chief negotiators have been instructed to "work intensively" to close such gaps.

The USD/JPY pair traded alongside US Treasury yields, ending the week unchanged at around 105.40. Yields advanced, despite the risk-off mood that put equities under selling pressure.

Commodity-linked currencies were among the best performers, holding on to most of their weekly gains, despite falls in gold and crude oil. Gold flirted with 1,920 to settle at 1,890. WTI settled at $37.00 a barrel, its lowest settlement in three weeks.

Australia and China are on holidays at the beginning of the week, although the first will release some macroeconomic figures.

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EUR/USD looks apathetic around 1.1770

EUR/USD comes under renewed pressure on Tuesday, deflating below the 1.1800 support and reversing two consecutive days of gains. The pair’s decline follows the persistent move higher in the US Dollar, as trade uncertainty dominates the sentiment ahead of President Trump’s SOTU speech.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Crypto Today: Bitcoin, Ethereum, XRP come under renewed pressure amid ETF outflows, tariff uncertainty

Bitcoin, Ethereum and Ripple are trading under increasing selling pressure at the time of writing on Tuesday, as market participants navigate renewed tariff uncertainty. The Crypto King holds above $63,000, down 2% intraday from its $64,656 open.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.