🇺🇸 USD – BEARISH
1️⃣ As investors looked past a setback in the development of a COVID-19 vaccine, fading hopes of any further US fiscal stimulus and the US political uncertainty kept the USD bulls on the defensive through the first half of the trading action on Wednesday.
2️⃣ U.S. retail sales will come negative this Friday as average hourly earnings growth slowed in September.
🇬🇧 GBP – BULLISH
1️⃣ The strength in the GBP triggered after British PM Boris Johnson says that the UK would not abandon the Brexit talks until it reached October 15 deadline.
2️⃣ Supported by weaker dollar as the market mood improved.
🇪🇺 EUR – BEARISH
1️⃣ Second wave of coronavirus infections across Europe, coupled with new lockdown restrictions in several countries, continued to threaten the region’s economic recovery.
2️⃣ A report indicating that the pace of German´s economic recovery is slowing.
3️⃣ CPI data expected to print negative this Friday due to lower German and France CPI on September.
🇳🇿 NZD – BULLISH
1️⃣ Investors were optimistic on the prospects of New Zealand’s continued economic recovery after lockdown restrictions were eased last week.
2️⃣ RBNZ’s Hawkesby says New Zealand’s economy needs continued support.
🇨🇦 CAD – BULLISH
1️⃣ WTI crude futures pared early losses to trade above $40 a barrel on Wednesday, on the back of IEA forecasts which showed crude inventories will likely fall by 4.1 million barrels a day in the fourth quarter of the year and a weaker dollar.
2️⃣ Governor Macklem added that the BoC is not actively discussing negative interest rates but they are a tool the bank could use in case it needs to do more to tackle economic challenges caused by the pandemic.
3️⃣ CAD gathers strength on impressive Canadian jobs report. Unemployment Rate in Canada declined to 9% in September.
🇦🇺 AUD – BULLISH
1️⃣ Investors moved into the Aussie after the International Monetary Fund revised its forecasts, predicting Australia’s economy will face a shallower-than-expected hit in 2020.
2️⃣ Investors expect the Employment Change to arrive better as PMI manufacturing shows improvement in employment’s component.
🇯🇵 JPY – BEARISH
1️⃣ Stability in the equity markets undermined the safe-haven JPY.
🇨🇭 CHF – BEARISH
1️⃣ Fading safe-haven demand undermined the CHF.
2️⃣ Switzerland’s consumer prices are projected to fall 0.7% this year, compared with the previous forecast of a 0.9% decline.
3️⃣ The SNB has been intervening strongly in the foreign exchange market to stop the rise of the highly valued franc to protect the export-orientated economy.
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