By Orbex
President Trump tweeted on Friday that the United States did not agree on rolling back the tariffs on China.
The tweet rebuffed claims made by China earlier last week.
The positive news from the trade talks pushed equities to new highs. Traders ignored the tweet as Trump said that the talks were progressing smoothly. Despite a brief pullback, the markets settled higher by Friday’s close.
Germany Trade Surplus Rises Modestly in September
The trade balance figures from Germany saw the surplus rising to 19.2 billion euros for the month of September. The gains came as exports grew faster than expected including an increase in imports.
German exports rose 1.5% on the month, reversing the 0.9% decline in August. Imports were up 1.3% in September from 0.1% in August.
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EURUSD on Track to Test Support
The currency pair maintained the bearish momentum. Price action is on track to post declines that will test the price level of 1.0005. Establishing support at this level which previously served as resistance could stall declines in the near term. As long as the support holds, the EURUSD will likely maintain a sideways range above the support area.
Sterling Continues to Slip on BoE Decision
The pound sterling continued to post declines into Friday’s close. This came as the Bank of England left interest rates unchanged. But, interestingly, there were two dissenting votes in favor of rising rates.
Many believe that the BoE could raise rates if the Brexit uncertainty eases. The UK will be heading to polls in just under a month’s time.
GBPUSD Could Extend Declines Further
The cable could push lower in the coming weeks. This comes after the BoE meeting managed to push the GBPUSD out of the range.
The downside breakout also confirms the topping pattern above 1.2865. The declines could now see the GBPUSD falling to levels near 1.2582 eventually.
Gold Ends Week on Bearish Note
The precious metal saw strong losses last week. The declines came even after Trump’s tweet which saw a moderation to the trade talk euphoria.
Gold prices now erase the gains made from the previous three weeks. The declines could continue into the near term. But the move is widely expected as gold prices stutter in their rally.
XAUUSD Breaks Below Support
The breakdown below the 1462 handle could mean that the precious metal will slip further. However, the Stochastics oscillator is currently posting a bullish divergence.
If we get to see an upside rebound, then XAUUSD will be correcting modestly higher. The price level near 1483.60 will be critical in the near term for XAUUSD to establish resistance.
By Orbex
