Today brought a pleasant surprise from the British pound. On Thursday, PM Boris Johnson and his Irish counterpart Leo Varadkar discussed the trickiest customs issues that arise in the context of the Brexit. At the end of the talks, they made a joint statement, saying that a new agreement is indeed possible.
DAX30 DAILY CHART
GBP quickly rose by 2.5 points, followed by EURUSD. The latter pair was also helped by the fact that the US inflation data for September turned out to be worse than expected. This makes euro more attractive, especially since the worst of the European monetary policy easing is already over and has had its impact on the quotes.
Gold is down a bit; for the past two months, the precious metal has been oscillating in a corridor that seems quite narrow for 2019. The trading community is waiting for it to exit the corridor from either end. The unusual Q4 stock exchange downturn could act as a catalyzer, driving gold back up. However, as we all know, whenever experts wait for something to happen, what transpires is exactly the opposite. Nobody can find any plausible grounds for a sharp decline in the gold prices, but if it happens, analysts will surely find a good post-factum explanation.
The US stock market had fallen before the main session opened, but later rebounded thanks to confident demand by both investors and speculators. The causes that pushed it down so sharply last week are now less relevant; fear is dissolving, making traders recall that a potential pre-New Year rally can still happen.
Friday’s news is bound to be exciting.
At 8 am, German consumer price index data will be published.
At 11:30, President of the European Central Bank Mario Draghi will make a statement.
At 2:30 pm, we’ll learn all CAD speculators’ favorite piece of news – Canadian unemployment data for September.
At 4 pm – and the last important news of the week – the University of Michigan Consumer Sentiment Index.
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