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GBP/USD trades modestly flat around 1.2985, stuck in a range around 1.2980-1.3000. EUR/USD now looks to 1.1830. Dollar Index was down 0.1% at 93.500, while USD/JPY fell 0.1% to 105.69. Helping the ‘risk-on’ mood was renewed confidence that U.S. lawmakers may be close to a compromise over a new coronavirus relief package after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour Monday.

The GBP/USD pair lifted above 1.2900 on headlines that the UK and EU will persist with Brexit negotiations, given the lack of material progress, we still see the 1.2950-1.3000 range as a cap for now. The optimism over US President Donald Trump’s potential discharge from the medical centre boosts the appetite for the risk assets at the expense of the safe-haven greenback. EUR/USD bulls await fresh impetus for the next leg up. Falling wedge breakout confirmed on the hourly chart. EUR bulls struggling to extend gains above 50-HMA at 1.1730. The dollar index was little changed at 93.789, while traders adjusted their positions in safe-harbour currencies. Against the safe-haven Japanese yen, the dollar rose 0.2% to 105.515 yen.

The GBP/USD pair rallied over 100 pips from daily swing lows and jumped to the 1.2940 region during the early European session, albeit quickly retreated few pips thereafter. EUR/USD extends the erratic performance in the last sessions, although it manages well to keep business above 1.17 the figure for the time being. The dollar pushed higher in early European trade Friday, along with the Japanese yen, as U.S. President Donald Trump testing positive for the Covid-19 virus hit risk sentiment, resulted in demand for safe haven currencies. The dollar index was up 0.1% at 93.797, while USD/JPY fell 0.4% to 105.11, its lowest level this week. President Trump confirmed, via a tweet, that he and his wife Melania had contracted the Covid-19 virus, just a few hours after a top aide he had spent substantial time with this week had also tested positive. However, he continues to work as normal from the White House.  DAX in Germany traded 0.8% lower, the CAC 40 in France fell 0.8% and the U.K.'s FTSE index dropped 0.7%. S&P 500 futures were down 1% . Futures for the tech-heavy Nasdaq fell 1.2% (NQc1). The MSCI world equity index, which tracks shares in 49 countries, was down 0.2% at 0736 GMT (MIWD00000PUS).  Equinor ASA (OL:EQNR) stock fell 0.5% after the Norwegian oil and gas firm outlined plans to cut its exploration staff by about 30% globally by 2023 to reduce costs as the pandemic hits the industry hard. Shares in many of the oil majors have slumped, with BP (LON:BP), Royal Dutch Shell (LON:RDSa) and Repsol (OTC:REPYY) all hitting 52-week lows in early trading. By contrast, renewables specialist Orsted (OTC:DOGEF) and wind turbine maker Siemens Gamesa  (MC:SGREN) hit new all-time highs. Rolls-Royce (LON:RR) slumped 6.8% after the aero engine maker's 5 billion pound recapitalization plan. U.S. crude futures traded 2.4% lower at $37.80 a barrel, while the international benchmark Brent contract fell 2.7% to $39.83. Both contracts fell more than 3% Thursday, and are on course for a second consecutive week of declines. Gold futures fell 0.1% to $1,915.70/oz.

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.   

GBP/USD navigates within the 1.2750-1.3000 range despite UK final GDP revised up to-19.8% QoQ in Q2. EUR/USD now looks to 1.1800 and above. Dollar Index was up 0.1% at 94.017 while USD/JPY was down 0.1% at 105.55. DAX futures contract in Germany traded 1% lower, CAC 40 futures in France dropped 0.9% and the FTSE 100 futures contract in the U.K. fell 0.7%. Chinese data released earlier Wednesday showed that the world’s second-largest economy's recovery continues to progress. The September manufacturing PMI came in at 51.5, beating August’s 51 reading, and the non-manufacturing PMI was 55.9 against August’s 55.2 - both remaining above the 50-mark separating growth from contraction.  U.K. GDP was revised to show a drop of 19.8% in the second quarter compared with the first, after the initial estimate showed a drop of 20.4%, while German retail sales rose a better than expected 3.% in August. Later in the session sees the release of German unemployment data for September, which will be studied carefully as an indicator of the strength of the economic recovery in Europe’s largest economy. Oil major Royal Dutch Shell (LON:RDSa) said it would cut up to 9,000 more jobs as it wrestles with a new environment of low prices and potentially lower long-term demand. U.S. crude futures traded 0.9% lower at $38.94 a barrel, while the international benchmark Brent contract fell 1.1% to $41.11. Both contracts closed more than 3% lower on Tuesday. Gold futures fell 0.6% to $1,891.45/oz. 

GBP/USD keeps bounces off 1.2836 to print a two-day winning streak. Cable is now forecasted to navigate within the 1.2750-1.3000 range in the next weeks. EU steps back from threats to drop trade and security talks, shows readiness to prepare a joint legal agreement. UK’s Gove refrains from entertaining the bloc’s demand over IMB, BOE’s Ramsden rules out negative rates. Brexit talks in Brussels will be up till Friday, BOE’s Carney, US Presidential Election debate and Fed speak also becomes important. EUR rebounded strongly from a low of 1.1613. The rebound has room to extend higher but any advance is expected to face stiff resistance at 1.1720. Dollar Index was down 0.1% at 94.233, after retreating from a two-month high of 94.745 reached last week. USD/JPY was up 0.1% at 105.64. In other markets, DAX futures contract in Germany traded 0.1% lower, CAC 40 futures in France climbed 0.1% and the FTSE 100 futures contract in the U.K. was flat. These benchmark cash indices all posted strong gains Monday, with the DAX starring, closing 3.2% higher. The German car sector may be in focus after Bloomberg reported that Uber (NYSE:UBER) is weighing up a purchase of Free Now, a ride-hailing joint venture between Daimler (OTC:DDAIF) and BMW (DE:BMWG).  Oil prices edged lower Tuesday as concerns about the impact on demand from rising coronavirus cases took precedence over hopes that a new stimulus package may be in the offing. U.S. crude futures traded 0.6% lower at $40.34 a barrel, while the international benchmark Brent contract fell 0.6% to $42.63. Gold futures rose 0.1% to $1,884.55/oz.  

GBP/USD probes the upper end of 1.2830/50 trading range. The Cable benefits from the weekend headlines suggesting brighter odds of success for the key Brexit talks.  EUR/USD plummeted to 1.1615, its lowest level since late July. The pair has posted an interim top at 1.2011 and heads lower, with 1.1500 at sight, as the greenback’s positive momentum will likely extend heading into the next Nonfarm Payroll report release. Dollar Index was down 0.1% at 94.552 while USD/JPY was down 0.2% at 105.36. In other markets, DAX in Germany traded 2.4% higher, the CAC 40 in France rose 1.9% and the U.K.'s FTSE index climbed 1.6%. ArcelorMittal (NYSE:MT) stock rose 5.7% after Cleveland-Cliffs (NYSE:CLF), the largest U.S. producer of iron ore pellets, agreed to buy its U.S. assets for about $1.4 billion. William Hill (LON:WMH) stock fell 12% to 272 pence, after soaring over 40% on Friday when it confirmed it had received proposals from U.S.-based private equity firm Apollo and casino giant Caesars (NASDAQ:CZR) Entertainment. Caesars said Monday that it may offer 272 pence per share, valuing the company at £2.9 billion. HSBC (LON:HSBA) climbed 10% after China’s Ping An Insurance increased its stake to 8% from 7.95%, seeing a bargain after the bank’s stock last week fell to the lowest since 1995. Diageo (LON:DGE) rose 5.5% after the world's largest liquor maker said performance has improved across the board, driven in large part by its U.S. business. Siemens Energy, meanwhile, got off to a sluggish start as the German engineering giant spun off its turbine business, which combines both renewables and its struggling thermal power division.  Oil prices weakened Monday, with the major oil benchmarks on course to end the month lower, for the first time in many months, as rising coronavirus cases threaten hopes of a recovery in demand. U.S. crude futures traded 0.7% lower at $39.97 a barrel, while the international benchmark Brent contract fell 0.6% to $42.14. Brent is on track for its first monthly loss in six while WTI is headed for its first monthly drop since April. Gold futures fell 0.2% to $1,863.30/oz.  

Cable is seen attempting a consolidation move ahead of a potential drop to the. Mid-1.2600s. The pair GBP/USD has remained side-lined near 1.2750 ahead of the London open. EUR/USD pair is currently trading at 1.1675, representing a 1.4% decline on a week-to-date basis. The US dollar index trades modestly flat at 94.37, having partially recovered from the NY lows to 94.20 reached amid mixed US data and Wall Street bounce. In other markets, DAX futures contract in Germany traded 0.1% higher, CAC 40 futures in France climbed 0.4% and the FTSE 100 futures contract in the U.K. rose 0.4%.  On Wall Street overnight, the Dow Jones Industrial Average closed 0.2% higher, the S&P 500 gained 0.3% and the Nasdaq Composite added 0.4%.   BMW (DE:BMWG) may be in the spotlight after the German luxury car maker agreed to pay $18 million to the Securities and Exchange Commission to settle claims that it had disclosed misleading sales figures.  Fast fashion group Boohoo in the UK published the conclusions of its review into supply chain issues that had knocked its share price badly earlier in the summer.  U.S. crude futures traded 0.1% lower at $40.29 a barrel, while the international benchmark Brent contract was flat at $41.94. Brent is heading for a drop of over 2% this week, while U.S. crude is on track for a decline of around 1.5%. Gold futures fell 0.3% to $1,872.20/oz.   

GBP dropped to a low of 1.2676 yesterday before rebounding to close little changed at 1.2726 (-0.06%).  UK Finance Minister Rishi Sunak is set to unveil a new wage support scheme later this Thursday. GBP/USD caught a fresh bid wave on the above announcement, having spiked to 1.2737 session highs before reversing to near 1.2715. EUR/USD is currently trading near 1.1660, representing a 2.3% decline on a month-to-date basis. The pair has shed more than 200 pips in the last three days on a broad-based US dollar rally. Dollar Index was up 0.1% at 94.505, around levels last seen two months ago. USD/JPY was down 0.1% at 105.34. In other markets, DAX futures contract in Germany traded 0.3% lower, CAC 40 futures in France dropped 1% and the FTSE 100 futures contract in the U.K. fell 0.9%.  At the close in New York overnight, the Dow Jones Industrial Average lost 1.9% to hit a new one-month low, while the S&P 500 fell 2.4%, and the NASDAQ Composite index fell 3%. Airbus may be in the spotlight following a Bloomberg report that Delta Air Lines is in talks with the European plane maker to delay the delivery of at least 40 aircraft that were set to be handed over this year. Oil prices weakened Thursday despite official data showing crude inventories falling by 1.6 million barrels last week, on concerns the economic recovery in the United States, the world's biggest oil consumer, is slowing. U.S. crude futures traded 0.6% lower at $39.65 a barrel, while the international benchmark Brent contract fell 0.4% to $41.60. Gold futures fell 0.6% to $1,858.05/oz.  

GBP/USD is currently trading just below the 1.27 hurdle whilst further GBP weakness is not ruled out but in view of the oversold conditions, according to FX analysts, the next support at 1.2650 is likely out of reach for now. GBP/EUR is trading at 1.0860 this morning, next support is at 1.0760 that we saw beginning of September which is the lowest since March. The conditions are also worsening in the UK where COVID-19 related deaths surge the most since July 14, with Tuesday’s death toll being 37. The EUR/USD pair has bounced off two-month lows of 1.1672, still remains vulnerable at 1.1683, down 0.18% on the day. EUR/USD could extend the decline to the 1.1630 level ahead of 1.1600 in the next weeks. The Dollar Index was up 0.2% at 94.237, climbing to a eight-week high, while USD/JPY was up 0.2% at 105.12. In other markets, DAX futures contract in Germany traded 0.4% higher, CAC 40 futures in France climbed 1% and the FTSE 100 futures contract in the U.K. rose 1%. Wall Street's Tuesday rebound was led by a 1.7% gain in the Nasdaq Composite, while the Dow Jones Industrial Average and S&P 500 made more muted gains of 0.5% and 1% respectively. Oil prices fell Wednesday after a surprise rise in U.S. oil inventories added to persistent worries about fuel demand as a surge in coronavirus cases around the globe led to stricter containment measures. The industry body, the American Petroleum Institute, reported late Tuesday that crude oil inventories rose by 691,000 barrels in the week to Sept. 18, compared with forecasts for a drop of 2.3 million barrels. Official data is due out later Wednesday. U.S. crude futures traded 1.1% lower at $39.37 a barrel, while the international benchmark Brent contract fell 0.9% to $41.34. Gold futures rose 1,3% to $1,883.30/oz.