Forex Trading Library

IMF Issues Another Grim Warning on Growth

0 420

The International Monetary Fund issued another grim warning for global growth.

It said that the US-China trade war would cut 2019 global growth to the lowest levels since 2008 – 2009. The IMF stated that the global outlook could darken even further if the trade tensions are not resolved.

The report comes after the US and China resumed trade talks this week. But the initial euphoria faded after Treasury Secretary Mnuchin warned that the US will go ahead with the tariffs it postponed if talks fall through.

German Economic Confidence Weakens Modestly

The investor confidence in Germany weakened slightly in October. The ZEW’s assessment of current economic situation fell to the lowest level since 2010. The ZEW index fell to -22.8 in October from -22.5 a month ago.

The data was, however, slightly better than the forecasts of a decline to -27. Meanwhile, the ZEW economic sentiment also weakened to -23.5 from -22.4. That being said, it still came in better than was forecast.

[optin-monster-shortcode id=”br9d5szjejc7bancki3f”]

Will EURUSD Be Able to Break the Resistance?

The common currency struggled to hold on to the gains made above 1.1030. Price action continues to consolidate near this level. But the failure to breakout higher could potentially signal a downside bias.

For now, the rising trend line remains intact. But a breakdown of this trend line could signal a move lower to 1.0945.

EURUSD

Brexit Heading Down to the Wire

With the clock ticking closer to the October 31st deadline, EU officials are mulling over calling for an emergency summit. The negotiations continue with the UK, but officials said that there is a lot to discuss.

The developments come after the initial euphoria of a Brexit deal faded. This came after a joint statement from the UK and Irish Prime Ministers. Meanwhile, PM Johnson has until October 19th to decide whether to call for another round of extension to the Brexit deadline.

GBPUSD Surges Ahead

The currency pair posted strong gains following the brief consolidation near the price level of 1.2533. The strong rebound off this level will signal further gains to the upside.

With GBPUSD breaking past the previously established highs of 1.2668, we expect to see further gains coming along. The upside target for GBPUSD is at 1.2895.

GBPUSD

Gold Slips as Risk Aversion Stays Low

The precious metal hit a session low on Tuesday. The declines came amid a lack of fresh fundamentals to go by in the markets.

The demand for the safe haven was also weaker as equities managed to post some meager gains. Gold was a bit choppy earlier in the week after the knee-jerk reaction to the US-China trade talks eased.

Gold Slips Below the Range Once Again

The precious metal eased once again, falling below the lower end of the sideways range. XAUUSD was trading below the 1485 handle. The breakdown in the level comes as gold prices remain trading rather flat.

If the downside momentum continues, we expect gold to retest the previous lows of 1462. To the upside, the price level of 1485 could be tested.

XAUUSD

Leave A Reply

Your email address will not be published.