Forex Today: Caution ahead of VP debate, dollar bulls fighting back

Here is what you need to know on Thursday, October 8:

The American dollar gave back part of its Tuesday’s gains this Wednesday, as US President Trump changed his twitter’s rhetoric, following a sharp slump in Wall Street after he announced the end of negotiation with Democrats. The sentiment improved after he said he supports different forms of stimulus, although financial assets’ behavior was uneven.

The FOMC published the Minutes of the latest meeting, which showed that policymakers noted that the incoming data revealed that economic activity was recovering faster than expected from Q2 dip. They also added that their outlook assumed additional fiscal support. The document fell short of triggering a market’s reaction.

US indexes soared and trimmed all risk-averse losses, but the greenback lost some modest ground against its high-yielding rivals. Fed’s Minutes gave support to the dollar.

The EUR/USD pair settled around 1.1760, while the Pound was the worst performer, weighed by Brexit-related news. Rumours suggest that the UK is planning to quit Brexit trade talks if they cannot reach a deal by October 15, the date set by PM Boris Johnson. Also, British Cabinet Minister Michael Gove noted that no-deal preparations are intensifying while UK’s chief negotiator David Frost, said that fisheries are the most difficult issue remaining in negotiations with the EU.

USD/JPY broke higher, helped by rising government debt-yields. The yield on the benchmark 10-year note surged to 0.79% a fresh multi-week high.

Gold remained depressed, ending the day at $1,887 a troy ounce. Crude oil prices spent the day consolidating, with WTI settling just below the 40.00 level.

Bitcoin, Ethereum, and XRP can fall lower, crypto investors not in panic mode just yet