The EU and the UK are in the middle of a game of Brexit chicken - Reuters

Joshua Gibson FXStreet

As reported by Reuters, the European Union and Britain are continuing to face each other down across the bargaining table as real life continues to unfold around them, with a growing number of people begging for real-world solutions and answers.

Key highlights

On Monday Britain announced that it would not be able to agree to any deals with the EU unless they have a firm agreement in place regarding the future of trade talks, while the EU is equally unmoved, saying they cannot make any further progress on discussions until the UK moves first.

In the run-up to an October 17th-18th summit of European leaders, Prime Minister Theresa May is seeking firmer proposals from the European bloc regarding post-Brexit ties, while leaders in Brussels are choosing to sit and wait for a better solution from PM May regarding the Irish border contention.

One of PM May's spokemen reiterated today that, as far as the UK is concerned, Brussels has to make the next move.

"The 27 remaining members of the EU might delay work on fleshing out their proposal for strong trade ties after Brexit and will instead focus on their own preparations this week, including contingencies for a “no-deal” scenario - given the profound divisions within May’s camp over the terms of Brexit." - Reuters

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold moves away from one-week low, climbs above $4,450 as USD edges lower ahead of CPI

Gold builds on its modest intraday recovery from the $4,300 neighborhood, or a one-and-a-half-week low, touched earlier this Friday, and climbs above $4,350 heading into the European session. The upside potential, however, seems limited as traders opt to wait for the release of US consumer inflation figures before placing directional bets.

Cardano approaches critical support as correction risks grow

Cardano (ADA) recovers slightly, trading at $0.206 at the time of writing on Friday, inches above the critical support zone after losing more than 6% so far this week. Weakening derivatives data and fading bullish momentum suggest a bearish near-term outlook, with a decisive close below the support zone potentially triggering a deeper correction for ADA.

US core CPI data set to ease in August as markets reprice Fed September rate decision

The US Bureau of Labor Statistics will publish the August Consumer Price Index data on Friday. The report is expected to show a small decline in annual core inflation. Any divergence from analysts’ estimates could influence the Federal Reserve’s policy outlook and impact the US Dollar’s valuation.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.