Here is what you need to know on Friday, October 11:
- The market mood is cautiously positively after the US announced progress in trade talks, and President Donald Trump announced he would meet Chinese Vice Premier Liu He late on Friday. A currency pact to weaken the yuan remains high on the agenda. A partial deal seems to have higher chances than a full one. The Japanese yen and Gold are on the back foot.
- However, the Chinese delegation is more tight-lipped, and the US may still insist on a full deal. Moreover, the New York Times has provided more details on the White House's ideas to limit Chinese access to US capital markets and scrutinize Chinese firms. Furthermore, Japan is worried about China's military buildup in the South Pacific.
- Brexit: GBP/USD is consolidating the massive 200 pips gains it enjoyed on Thursday. A three-hour-long meeting between UK Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar resulted in a joint statement talking about a pathway to a deal. The Irish press hinted about major UK concessions. One option mentioned in the media is for a free-trade agreement in Ireland. Another option is that Northern Ireland leaves the EU customs union with the rest of the UK but continues following EU rules, thus allowing an open border. UK Brexit Secretary Stephen Barclay and Chief EU Negotiator Michel Barnier will meet today. See Brexit: Three scenarios and GBP/USD price targets as B-Day approaches
- Loretta Mester, President of the Cleveland branch of the Federal Reserve and a hawk, has expressed concern about weak business investment. Neel Kashkari, her colleague from the Minneapolis Fed and a dove, supported rate cuts. Eric Rosengren from the Boston Fed speaks later today.
- The economic calendar features Canada's jobs report for September, which carries modest expectations after a surge in hiring in August, and the preliminary read of Consumer Sentiment from the University of Michigan for October. See US Michigan Consumer Sentiment Preview: Concerns about the future are driving the decline in sentiment
- Cryptocurrencies remain stable after gaining earlier this week. Bitcoin hovers above $8,500.
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.