Equity markets rose on Wednesday after reports emerged that China was open to a partial US trade deal. The comments come amid China asking the US to remove the 28 entities from the blacklist. It is likely that the markets will continue to monitor the developments. So far, there has been no official word and most of the gains were led by rumors. Both Bloomberg and the Financial Times reported the positive developments citing “unnamed sources”. The rebound comes after equities fell on Tuesday due to dimming prospects of a deal.

 

EU Offers to Make Concessions on Brexit Deal

A day after EU leaders shrugged off the Brexit proposal, reports showed that EU officials were ready to make concessions. The EU is looking at an option to offer a mechanism for Northern Ireland to leave the backstop after a number of years. The reports come as the deadline for the October 31st Brexit deal looms closer.

 

Sterling Stays Muted to Brexit Developments

GBPUSD remained rather flat. Price action was seen testing the lower end of the support at 1.2203. It later bounced back higher after testing this level but prices remain caught to the upside of 1.2291. As long as the support holds, the currency pair could remain flat. But the bias is building up to the downside. A breakdown below the support could signal a decline to 1.2082.

GBPUSD

 

Crude Oil Inventories Continue to Build-Up

The weekly oil inventory report from the Energy Information Administration (EIA) saw another week of rising inventories. For the week ending October 4, commercial crude oil stockpiles rose 2.9 million barrels. This marks a fourth consecutive weekly increase in oil inventories. The EIA, earlier in the week, released a report where it lowered the crude oil price target to $57.00 by the second quarter of 2020. This was down from the previous estimate of $62.00 a barrel.

 

WTI Crude Oil Attempting to Rise Higher

Oil prices are seen posting a bottom near the 51.70 level. Price action managed to rise to the upside at 53.55. A breakout above this level will confirm the upside bias. The divergence on the four-hour chart remains which indicates the upside. In the near term, watch for price action to close above 53.55 to confirm further gains.

WTI

 

Gold Stays Subdued after Powell’s Speech

Gold prices were seen recovering from declines earlier in the week. Fed Chair Powell, in a speech said that the central bank would restart its balance sheet program once again. The Fed chair said that the central bank will start purchasing treasury bills. The move comes after the Fed initially started to unwind the balance sheet that it amassed during the QE era.

 

XAU/USD Retests Upper Range. Will it Breakout Higher?

Gold prices were seen rising back to the upper end of the range at 1508. The gains in price action come after gold prices initially slipped to the downside. However, gold needs to break out to the upside rather convincingly in order to confirm further upside. A close above the 1508 level will potentially see gold prices rising to the next upside target of 1532.

GOLD

This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.

Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex Analysis

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.

EUR/USD News

GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.

GBP/USD News

Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex Majors

Cryptocurrencies

Signatures