Risk Appetite Returns As Trump To Meet Chinese Vice-Premier

Equity markets managed to rebound on news that President Trump will be meeting with Vice-Premier Liu He.

The news comes as the US and China trade talks resume. However, over the past few days, risk appetite was volatile. Equities flip-flopped on new reports of the trade talks.


US Inflation Stays Flat in September

The monthly inflation report from the United States showed that consumer prices rose less than forecast. On a month over month basis, headline CPI was unchanged.

This missed estimates of a 0.1% increase. Core inflation rate rose 0.1%, falling short of the 0.2% increase. The US dollar weakened on the news. Headline inflation slipped to 1.7% on the year following the latest release.


EUR/USD Jumps on the Back of a Weaker USD

The euro maintained the bullish momentum. The currency pair rose to a three-week high, briefly testing 1.1091. The gains come as the EURUSD has been trading below this resistance level over the past few weeks. Further momentum to the upside could see the common currency breaking past the current resistance level. The next upside target is at 1.1140.



Sterling Gains on Brexit Optimism

The pound sterling posted gains on Thursday after a meeting between the UK and Irish leaders. In a meeting between British PM Johnson and Irish PM Varadkar, both leaders committed to a statement claiming that a resolution to the Brexit stalemate is possible.

The news comes as the UK approaches the October 31st Brexit deadline. The news is seen as a positive development with the Irish backstop arrangement being the main focus of the talks.


GBP/USD Pares Losses, Can the Gains Continue?

The currency pair reversed the losses from earlier this week. After price action threatened the lower support at 1.2203, the news sent the currency higher. GBPUSD was testing the previously established resistance level at 1.2370. A clear close above this level will confirm further upside. The next main target is at 1.2533.



Gold Slips as Investor Optimism Rises

The precious metal extended declines on Thursday following days of uncertainty. By Wednesday, equities required, pushing appetite for risk assets higher.

This led to safe haven assets losing ground. While gold prices closed flat on Wednesday, the declines accelerated into Thursday’s close. Investors now wait for the conclusion of today’s trade meeting.


XAU/USD Fails to Breakout from the Range

The precious metal has been trading within the confines of 1508 and 1485. Repeated tests to the upside failed to result in a convincing breakout. This pushed gold prices lower on Thursday. Price action could drop towards the lower boundary of 1485. A close below the 1485 handle will confirm the downside bias in gold.


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Editors’ Picks

EUR/USD clings to 3.5-week’s high, trades above 1.1000 figure

The pair is challenging the 1.1047 resistance. EUR/USD bull recovery from 34-month lows remains intact. Further coronavirus headlines are awaited.


GBP/USD hits new 2020 low and bounces amid Brexit rhetoric, coronavirus headlines

GBP/USD is trading above 1.2800 after hitting a new 2020, nearing the 1.2700 figure, as concerns about a no-trade-deal Brexit are weighing on the pound. Modest recovery seen in USD during the American session keeps the bearish pressure intact.


XAU/USD tumbles near two-week’s lows, sub-$1600/oz

Gold has been dropping sharply this Friday while reaching the 200 SMA on the four-hour chart. XAU/USD bulls gave up as sellers took the market down sharply. The bears seem to be in charge and more down could potentially be expected. 

Gold News

WTI remains under pressure around $45.00

Nothing new around crude oil prices, with rising concerns on the Chinese COVID-19 and its potential impact on the economy and the demand for the commodity keeping traders’ sentiment well depressed.

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FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

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