By Orbex
Reports emerged on late Friday that the US was considering blocking investments in China. The deliberations which are not yet finalized are aimed at restricting US investments in China’s markets.
A lack of regulatory oversight was cited as one of the reasons for considering this move. The report comes as US-China trade talks will be resuming from October 10th.
Economic sentiment in the eurozone fell to the lowest levels since September 2015.
Data from the European Commission released on Friday showed that the economic sentiment index fell to 101.7 from 103.1 in August. This was lower than the estimates of a decline to 103.0.
The commission said that the declines were because of deteriorating confidence in the industry.
Free Reports:
The currency pair closed on Friday with some modest gains. Price action looks to have stalled near the support area of 1.0944 – 1.0925. However, price needs to follow through with some gains to the upside to confirm the reversal. If the bullish momentum picks up, the currency pair could attempt rising to 1.1091.
The British government plans to present a detailed proposal this week to break the Brexit deadlock, on the back of a Tory party conference.
Expectations are for the new plan to set out a solution on the Irish backstop which has become the main point of disagreement.
The currency pair remains bearish as it broke past the initial support area of 1.2370. This comes following the downside breakout from the rising wedge pattern.
The bearish momentum, however, pushed GBPUSD down to the next support area of 1.2291. If this support breaks, then we expect to see sharper declines. The next main support is seen at 1.2082.
Crude oil prices resumed their declines after the tensions in the Middle East showed signs of easing. Saudi Arabia declared a partial cease-fire in Yemen, a move that could potentially soften the tensions in the region.
Price action in crude oil has been somewhat volatile. Various attempts to extend lower were met with strong price rejection. However, the overall trend in crude oil remains to the downside.
Amid a lack of the bearish momentum, price action could remain somewhat range-bound before falling lower. The support area of 54.42 will also mark the gap being filled.
By Orbex