Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar drifted lower during the Asian trade session on Tuesday. Traders were cautiously optimistic over recent trade related news and this boosted the demand for higher risk Forex units. Traders are also monitoring politics in the United Kingdom as they remain tumultuous. This is muddling, somewhat, the Brexit outlook.
The benchmark AUD/USD currency exchange rate is trading near a six week high at $0.6875. The GBP/USD Forex market is also near a six week high at $1.2385. Traders were happy with a new law that will force PM Boris Johnson to ask the European Union for a three month extension by October 19 if no deal is reached. However, Johnson, is signaling he is looking for legal ways to circumvent this new law.
The safe haven Japanese yen hit a five week low against the U.S. dollar. The USD/JPY exchange rate was trading at 107.46 yen.
The euro also rallied against the dollar to hit a high at $1.0167 after news crossed the wires that Germany could set up a system that allows public investment agencies to boost fiscal stimulus in a way that does not violate national spending laws.
As of midnight GMT, the GBP/USD was steady trading just below a six week high at $1.2344. The pound shrugged off news that lawmakers blocked PM Johnson’s second call for early elections. He has vowed to reach a deal with the European Union at next month’s EU Summit.
Forex Traders Monitor Trade News, weakening the Dollar, and the Upcoming ECB Decision
Traders are cautiously optimistic after U.S. Treasury Secretary Steven Mnuchin, told Fox News that “a lot of progress: has been made towards a trade deal with China. He said that the United States is “prepared to negotiate.”
Forex moves were cautious during the Asian trade session as traders are on the sidelines ahead of the European Central Bank meeting. This meeting is scheduled for Thursday and the markets are expecting at least a 20 basis point rate cut and other accommodative monetary policy stimulus including the restart of quantitative easing.
