Forex Today: US politics get in the way

Here is what you need to know on Wednesday, September 30:

The greenback edged lower against most major rivals, falling alongside equities. The market’s mood deteriorated on the back of increasing coronavirus cases in Europe leading to new restrictive measures, combined with a cautious stance ahead of the first US presidential debate that will take place at the beginning of the Asian session.

The EUR/USD pair edged higher, despite mounting concerns about the spread of COVID-19 as Autumn kicks in in the North Hemisphere. So far, the US seems to be better positioned within the pandemic, as the number of contagions has stabilized lately. In Europe, however, new restrictive measures are coming into place, and even German’s Chancellor, Angela Merkel, warned about the seriousness of the situation in Berlin.

GBP/USD was unable to rally, as BOE Governor Bailey said that the central bank is not out of ammunition when it comes to additional QE. He also said that policymakers have “not ruled out using negative interest rates but are realistic about challenges from banking retail deposits.”

Gold soared as the dismal mood boosted demand for the bright metal, which ended the day at $1,897 a troy ounce. Crude oil prices, however, came under pressure and followed the lead of equities, with WTI ending the day at $40.00 a barrel.

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