The trade talks between the United States and China produced some positive headlines. This brought back optimism into the markets which have been flip-flopping in response to the developments.
President Donald Trump confirmed that there is a trade deal with China on Friday.
He stated that the deal will come in phases. Trump also said that the US was postponing the tariff increase due to come into effect next week.
Germany’s Final Inflation Unchanged
The final inflation report for Germany for September confirmed that consumer prices were unchanged on the month. This was consistent with the flash estimates from a few weeks ago. The stale inflation growth comes as the ECB restarted its QE program in September.
Clears Resistance, More Upside Ahead?
The currency pair managed to clear the 1.1030 level of resistance. Price action eased back but prices were promptly rejected. The gains, if maintained could see the common currency attempting to test the 1.1091 level. This marks the previous resistance level that has held. The downside opens up only if the closes below 1.1030.
The positive developments on the Brexit talk saw investors bidding the higher. The GBP gained over 1.87% on Friday and marked the biggest two-day gain since December 2008.
The GBP rose following the joint statement from the UK and Irish prime ministers that a deal was possible. The UK is set to leave the EU on October 31st.
Likely to Maintain the Upside Momentum
The currency pair broke out from its range, confirming the upside after breaking past the 1.2370 resistance. The strong momentum saw prices breaking past the 1.2533 level eventually by Friday’s close.
Any near term retracement will see this level of 1.2533 being tested. A retest of support at 1.2533 will see further gains for . The next main upside target is at 1.2740.
caught a bid on Friday. This came on reports of an attack on an Iranian oil tanker. The rockets that were fired were said to have come off the Saudi coast, once again raising the prospects of unrest in the Middle East. The gains come after crude oil prices turned flat over the past few sessions.
Can WTI Crude Oil Rise Higher?
After oil prices broke past the 53.55 level of resistance, there is potential for further upside. In the near term, any retracement will see the retest of 53.55 for support. As long as prices do not fall below this level, the upside bias remains.
Oil prices were trading within the range of 53.55 and 51.70. The upside breakout now opens the way for further gains. The next main target is at 57.50 where resistance holds.