US-China trade talks move into second day, with sentiment improving to the benefit of stocks. Meanwhile, the pound is surging, as traders digest the improved tone from UK-EU talks.

  • Stocks rise, but US-China trade hopes rest in Trump talks

  • Crude on the rise following Iranian tanker attack

  • Sterling gains continue as UK-EU talks continue 

European markets are trading in the green as we look to close out the week in a positive fashion. With Trump expected to meet the Chinese Vice Premier today, there is a growing sense of optimism over a potential deal that could at least deescalate the situation by delaying or postponing currently planned tariffs. Suggestions of a currency pact point towards a short-term solution that could appease Trump for now, buying room for both sides to continue negotiating without the threat of the December tariffs hanging over talks.

Crude prices are surging following a missile attack on an Iranian oil tanker travelling close to Saudi Arabia. Following the huge attack on Saudi operations last month, all signs pointed towards this being a retaliation act. While we have seen no confirmation of the assailant, a statement from Iran points towards the possibility that it was not in fact the Saudis who launched the attack. Irrespective of who launched the attack, there is no doubt that geopolitical tension is on the rise in one of the most important zones for crude production and transportation. Today has also seen the IEA monthly report signal expectations for a slower rate of demand growth in 2019 and 2020, with both forecasts being revised lower in response to a continued global slowdown. While recent OPEC figures have highlighted the 1.28m bpd decline in Saudi output in September, there is a feeling that global production will not be as adversely impacted as had first been the case.

The pound has enjoyed an almighty rise off the back of yesterday’s positive statement from Irish Taoiseach Leo Varadkar who points towards a potential pathway to success in talks between the two sides. Rumours of a new treaty to avoid Brexiteer fears of being trapped in the Irish backstop help raise hopes of an eventual deal that could pass in parliament. Todays headlines are likely to be dominated by the outcome from a meeting between Barnier, Barclay and Tim Barrow, as the sides seek to ascertain a pathway to avoid a no-deal Brexit. Meanwhile, with the pound driving higher off the back of an optimistic tweet from Tusk, it is clear that GBP traders will find plenty of volatility given the raft of statements coming out from both sides.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD turns below 1.10 as market mood eases

EUR/USD has dropped below 1.10 as the market mood improves. Earlier, it hit three-week highs as the stock market crash and rush into bonds is raising the chances of the US Fed cutting rates. Further coronavirus headlines are awaited.

EUR/USD News

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

GBP/USD has dipped below 1.2800, hitting a new 2020 low 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.

GBP/USD News

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.

Oil News

FXStreet launches Real-Time Trading Signals

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.

More info

Forex Majors

Cryptocurrencies

Signatures