FX MARKET REPORT 01.10.2020

FX MARKET REPORT 01.10.2020

FX MARKET REPORT 01.10.2020

Daily Commentary
Daily Commentary
FX MARKET REPORT 01.10.2020
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FX MARKET REPORT 01.10.2020

GBP/USD juggles with the recovery moves from 1.2913 between 1.2930 and 1.2940 while heading into the London open. The pair rises for the fourth consecutive day by crossing the 50-day EMA amid bullish MACD. A new test of EUR/GBP 0.9400 (2020 high) seems very possible in the coming weeks, at which point it would finally make sense to buy GBP looking for an eventual deal. EUR/USD has been advancing on high hopes for a US fiscal deal after falling by 1.82% in September, confirming its biggest single-month percentage decline since July 2019. The pair is debating between a break or bounce at the 1.1755 strong resistance. The dollar weakened in early European trade Thursday, falling to a one-week low as fresh hopes of new U.S. fiscal stimulus prompted traders to seek out the perceived riskier currencies. The Dollar Index was down 0.1% at 93.875, just off the one-week low of 93.680 hit earlier. Global shares tried to extend gains on Thursday on renewed hopes for fresh U.S. stimulus measures, but mounting uncertainty ahead of America’s presidential election and technical problems in Japan kept gains in check. S&P500 (SPX) gained 0.83% and the Nasdaq Composite (IXIC) added 0.74%, even though they wrapped up September with their first monthly declines since March, when mandated coronavirus shutdowns slammed the economy. A spate of economic data mostly surprised to the upside, with the ADP (NASDAQ:ADP) National Employment index blowing past analysts’ expectations and pending home sales surging to an all-time high.   

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GBP/USD juggles with the recovery moves from 1.2913 between 1.2930 and 1.2940 while heading into the London open. The pair rises for the fourth consecutive day by crossing the 50-day EMA amid bullish MACD. A new test of EUR/GBP 0.9400 (2020 high) seems very possible in the coming weeks, at which point it would finally…

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