Here is what you need to know on Monday, October 7:
- Market sentiment is somewhat damp after reports that China intends to limit the scope of a trade deal with the US. Chinese Vice Premier Liu He will lead a delegation to Washington later this week. AUD/USD is bearing the brunt of the fall. Other currency pairs are little-changed as a new week begins.
- Brexit: European leaders have expressed pessimism about reaching an agreement with the UK by the EU Summit on October 17. French President Emmanuel Macron gave Britain until Friday to bring new proposals. Chief EU Negotiator Michel Barnier said the responsibility for a no-deal is Johnson's. The bloc's officials see Prime Minister Boris Johnson's plan as insufficient, especially as it fails to guarantee open borders in Ireland. In the meantime, the UK PM insisted the country will leave the EU on October 31, come what may. Negotiations resume today after Brussels refused to hold talks over the weekend.
- Impeachment inquiry: A second whistleblower has reportedly come forward to provide information against President Donald Trump. The law firm representing the first whistleblower says it is in talks with additional people with data. House Democrats are set to hold more closed-door hearings during the week. Opinion polls have shown a minor shift against the president.
- Jerome Powell, Chair of the Federal Reserve, said that the US economy is in a good place in a speech on Friday. His remarks came after the US Non-Farm Payrolls report for September showed a mixed picture with a satisfactory increase in jobs, disappointing wage growth, and a drop in the unemployment and underemployment rates. Powell will make another public appearance today, but he will likely refrain from commenting on monetary policy.
- German Factory Orders and euro-zone Sentix Investor Confidence may be of interest in an otherwise light day on the economic calendar.
- Cryptocurrencies have been on the back foot with Bitcoin slipping below $8,000.
- Oil prices have failed to recover after the massive sell-off last week and WTI remains below $53.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price flat lines above $2,300 mark, looks to US macro data for fresh impetus
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from over a two-week low – levels just below the $2,300 mark – and oscillates in a narrow range heading into the European session on Wednesday.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.