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.

eurusd

 

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.

gbpusd

 

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.

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

Latest Forex Analysis

Editors’ Picks

EUR/USD nears weekly highs as risk-on returns

The EUR/USD pair was dragged higher by a soaring Pound, now hovering around 1.1040. The market is all about sentiment, and this last dependent on Brexit and the US-China trade relationship.

 

EUR/USD News

GBP/USD surges to 5-month highs on reports of a draft Brexit deal

GBP/USD has leaped toward 1.28, hitting the highest since May. Reports suggest that the UK and the EU are zooming in on a deal. Details are awaited and negotiations continue.

GBP/USD News

USD/JPY in search of a firm direction, stuck in a range below mid-108.00s

The prevalent risk-on mood weighed on the JPY’s safe-haven status and extended support. A sharp fall in the US bond yields undermined the USD and failed to impress bullish traders.

USD/JPY News

Cryptos: Incumbents don't know to play well

The Libra project led by Facebook remains on track despite the first defections. Those who have abandoned the project are mostly payment gateways. Bitcoin's lack of tone weighs on Ethereum's mood.

Read more

Gold slumps to $1,480 area on Brexit hopes

The troy ounce of the precious metal continued to weaken in USD terms in the American trading hours as markets cheered reports claiming that the European Union (EU) and the United Kingdom (UK) are closing in on a draft Brexit deal that could be announced before the end of the day on Tuesday.

Gold News

Forex Majors

Cryptocurrencies

Signatures