Wall Street's benchmarks march higher on trade-talk hopes

The Dow Jones Industrial Average added 150.66 points, or 0.6%, to 26,496.67.
The Nasdaq Composite Index added 47.04 points, or 0.6%, to finish at 7,950.78.
The S&P 500 index put on 0.6%, or 18.73 points, to 2,938.13.

Ross J Burland FXStreet

On a risk-on session, following positive momentum in trade talks between the US and China as well as signs of a Brexit breakthrough, US benchmarks were on the front foot. The news that trade talks had started off well, and in earnest, while Trump was also due to meet with Chinese Vice Premier Lui He on Friday. “Big day of negotiations with China. They want to make a deal, but do I? I will meet with the Vice Premier tomorrow at The White House,” said Trump, stocks rallied.

The Dow Jones Industrial Average added 150.66 points, or 0.6%, to 26,496.67 while the S&P 500 index put on 0.6%, or 18.73 points, to 2,938.13. The Nasdaq Composite Index added 47.04 points, or 0.6%, to finish at 7,950.78.

US data taking a breather

On the US economic calendar, the headline inflation surprised to the downside in September at 0.0% m/m, keeping the annual rate unchanged at 1.7% y/y. "Core inflation was a key drag to the downside at 0.1%, finally losing some steam in September following three consecutive 0.3% increases in Jun-Aug," analysts at TD Securities explained.

Brexit risks dimmed

As for Brexit headlines, Irish PM Leo Varadkar says a Brexit deal is possible following a three hour meeting with UK PM Boris Johnson. "This is a stark change in tone from earlier comments from the EU. A press statement released says their discussions concentrated on the challenges of customs and consent but gave little away as to exactly what concessions had been made regarding Northern Ireland in order to get to this position. Varadkar says the talks were at a ‘very sensitive stage’ but were ‘very positive and promising’. Negotiations between the EU and the UK will continue tomorrow between the UK Brexit Secretary Stephen Barclay and the top EU Brexit negotiator Michele Barnier," analysts at ANZ explained.

DJIA levels

The DJIA rallied to the 21 and 50-DMAs converging in the mid 26000s on a risk-on session. Bears will otherwise be en-route for a test of the psychological 26000 level again. A break to the upside and through the mentioned DMAs accumulating around the mid-point of the 26000s in line with the Sep lows-resistance line in the mid-26000's will open prospects back to the Sep highs through 27200. On the downside, the 200-DMA is located at 25940.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD seems vulnerable near mid-1.3500s; UK CPI/FOMC Minutes awaited

The GBP/USD pair struggles to capitalize on the previous day's late rebound from an over one-week low – levels below the 1.3500 psychological mark – and trades with a negative bias for the third consecutive day on Wednesday. The downside, however, remains cushioned as investors seem reluctant to place aggressive directional bets ahead of the release of the latest UK consumer inflation figures and FOMC Minutes.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

Top Crypto Gainers: Jito drops, Morpho holds steady, Convex Finance climbs

Decentralized Finance tokens, including Jito, Morpho, and Convex Finance, rank among the top-performing crypto assets over the last 24 hours. Jito dips on Wednesday after rallying 22% the previous day on the launch of a new mainnet node.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.