Forex traders will focus on developments out of the UK as Parliament turned hostile and opposition parties split on how to proceed next. The British Pound has been under pressure, but the GBPUSD stabilized at support after the Trump impeachment inquiry. The US political issues are bigger than that of the UK, will this rally the GBPUSD off of support levels? The sole UK economic data point today showed an improvement in consumer confidence which remains in negative conditions. Will US data provide the next catalyst for this currency pair?

The final reading for second-quarter GDP out of the US is expected to confirm the previously reported data. The Fed’s preferred inflation gauge, the core PCE is predicted to remain at 1.7% annualized and below the 2.0% inflation target. With the slowing economy, inflation remains absent despite a tight labor market. Forex traders will also look forward to more housing data following yesterday’s upside surprise.The USDSGD just moved above resistance, will today’s economic data result in more upside or will price action correct to the downside.

The US currency recovered losses associated with the beginning of the investigation as part of the impeachment proceedings against the US President Donald Trump, while rising tensions in world trade put pressure on the Chinese yuan and the Australian dollar.  

The Reserve Bank of New Zealand kept interest rates on hold at 1.00% as was widely expected by market participants. The New Zealand Dollar was able to extend its rally after the central bank announcement. The trade deficit for August came in bigger than expected on the back of higher imports while exports clocked in slightly higher than expected. Is more upside in the NZDUSD possible?

The dollar rose slightly against a basket of major currencies on Tuesday, while the euro came under pressure due to new signs of economic difficulties in the eurozone, while the pound was trading near a weekly low pending a key decision by the Supreme Court about Johnson’s decision  to suspend parliament.  

PMI data out of the Eurozone disappointed yesterday, especially out of the manufacturing sector. This pointed towards more weakness for the global economy. Trade worries have increased after the Chinese delegation cut its US trip short and returned home. This has provided a boost to gold as traders are once again seeking safe haven. After support around the $1,500 mark pushed this precious metal higher, will bullish momentum increase and push gold above resistance?

Brexit continues to be in the driving seat for the British Pound. Following positive comments out of the EU that a deal is possible before October 31st 2019, the British currency rallied. Sentiment shifted towards a more cautious tone after Ireland said that while the mood has improved, both sides remain a distance apart. Today’s CBI data out of the UK is expected to show weakness in order with a minor price recovery. Inflation is running slightly above the the Bank of England’s long-term price target. Will today’s data move the GBPAUD?

Forex traders will start the new trading week with a series of preliminary PMI data out of the Eurozone. Economists predict a general improvement out of France, Germany and the Eurozone as a whole. The EURUSD has around its current support level with a rise in negative sentiment in the US Dollar after the Fed delivered its second consecutive 25 basis point interest rate cut, but without a clear fundamental driver for the Euro to the upside. How will this morning’s PMI data impact price action?

Gold prices rose Friday and reached their first weekly rise in a month, supported by a weaker dollar, tensions in the Middle East and caution regarding trade negotiations between China and the United States.  

The People’s Bank of China decided to decrease the interest rate on its 1-Year Loan Prime Rate by 5 basis points to 4.20%, but countered this move by a 5 basis point increase in its 1-Year Loan Prime Rate to 4.85%. This surprised markets today where the overall mood is geared towards risk-off. German PPI data showed a monthly increase, but pointed towards an annualized slowdown. The EURJPY is drifting lower after moving into resistance, what impact will today’s advance consumer confidence data out of the Eurozone have on price action?

Following the ECB interest rate cut and restart of QE last week, the Fed’s interest rate cut yesterday, this morning’s Bank of Japan and SNB decision to keep interest rates unchanged, the Bank of England’s interest rate announcement is expected to show no change. With wage pressures accelerating, the British central bank is likely to remain on the sidelines which will support a stronger British Pound moving forward. Can the rally in the GBPUSD extend as monetary policies between the US and the UK diverge or is price action going to partially reverse its advance?

The Australian labor market surprised to the upside on its headline figure on the back of part-time jobs creation. Full-time jobs were lost and the unemployment rate advanced. The Australian Dollar came under selling pressure as bearish momentum is expanding. The Reserve Bank of Australia will closely follow economic developments as its last minutes indicated that an interest rate cut is on the table. Will the AUDCHF enter a bigger sell-off or is the current sell-off a limited move to the downside? Today’s fundamental analysis will cover price action in both directions.

The US dollar is trading near a seven-week high against the Japanese yen, amid a slow recovery in the oil market after attacks on Saudi Arabia. Nevertheless, traders prefer caution in anticipation of the US Federal Reserve meeting, which is expected to lead to another interest rate cut.  

Forex traders are eagerly awaiting today’s FOMC announcement. Expectations call for a 25 basis point interest rate cut by the US Fed to 1.75%, but what will Fed Chief Powell hint in regards to future monetary policy? US President Trump has openly criticized his central bank and even called for negative rates. Inflation has been absent and Trump is seeking assistance in his trade war with China. Despite the more dovish central bank, the US Dollar was able to attract safe haven bids. How will the USDCAD perform after today’s interest rate announcement?

Forex traders will get economic data out of the Eurozone’s third biggest economy where expectations call for a monthly increase in Italian new industrial orders as well as sales. Eurozone inflation data will also be released and economists expect it to confirm the absence of inflationary pressures. How will this impact the EURGBP? This currency pair started a strong sell-off after a no deal Brexit has been taken off the table by the UK Parliament. Can today’s economic data initiate a short-covering rally?

Today’s ZEW Survey is expected to move the Euro. Economists expect a worsening in the current situation sub-component, but an improvement in the economic expectations sub-component. The Eurozone economic expectations sub-component is also anticipated to show an improvement, but all three are set to remain deep in negative territory. How will forex traders react to this economic data point? Bullishness has increased in the Euro after Mario Draghi’s press conference, but is this just a small bounce in a bigger down-trend or can the EURAUD enter a rally?

Daniel Chambers, head of trading at Sequoia Capital Fund Management, stopped trading nearly $ 200 million (£ 160 million) in pounds from his systematic foreign exchange portfolio during the year due to Brexit risks. Other major investors followed his example.  

Forex traders started the new trading week with a series of disappointing Chinese economic data. Industrial production slowed down further in August against an expected rebound by economists. This darkened the global economic picture, adding to the slowdown was a weaker reading on retail sales which slipped further in August. Economists predicted an up-tick. Property investment as well as fixed assets excluding rural also eased further which overshadowed to decrease in the unemployment rate. Will this end the correction in Silver following a $2 drop?

The single European currency rose against the US dollar after the European Central Bank launched a new stimulus, but could not justify the more dovish market expectations imposed on it.  

The EURUSD started to rally after the ECB announced its stimulus package. While opinions on the success of such measures differ, for now forex traders have decided to trust the monetary policy and pushed this currency pair off of its lows. Inflationary pressures remains absent as evident in the latest data released this morning out of Germany and Spain. Have central banks ran out of ammunition and ideas? Studies have indicated that QE doesn’t have a positive impact on the economy and lead to a reduction in lending. Will the EURUSD rally extend?

All eyes are on the ECB today where President Draghi is expected to announce a massive stimulus plan in its next round of quantitative easing. A cut in Deposit Facility Rate to -0.50% is expected together with more bond buying. The latest Eurozone industrial production figures disappointed and showed a steeper contraction than expected. Inflation remains absent which may give the ECB reasons to worry down the road. With a dovish ECB priced in, can bulls power ahead in the EURCAD following the press conference?

Today’s CPI data out of the US is expected to confirm the absence of inflationary pressures. The US Fed will meet next week and markets expect a 25 basis point interest rate cut to be delivered. President Trump has stepped up his attacks on the Fed, led by Powell whom he appointed as Fed Chief, and suggested the Fed should consider negative interest rates. He further pointed out that the US should rebalance its debt load which is above 100% of GDP. Can the US Dollar handle a more dovish central bank and how will this impact the USDJPY?

The Japanese yen fell on Wednesday as the surge in the number of investors in safe assets continued to weaken amid rising risk appetite, while the euro is trading in flat before tomorrow's meeting of the European Central Bank.  

Following the announcement that the US and China will resume high level talks in October, traders decided to book profits in gold and pushed this precious metal to the downside. The sell-off took price action below $1,500, but selling pressure started to recede as forex traders shifted the focus to the ECB meeting this week. Global central banks have increased their gold purchases which is supporting a longer term uptrend and as the global economy continues to cool further, gold is favored to reverse back to the upside and continue its rally. Is it time to re-enter the gold rally?

Forex traders will get key employment data out of the UK this morning. Despite Brexit uncertainties, employers have added jobs and more importantly wages have risen. This will ultimately keep the Bank of England sidelined as wage inflation is on the rise and provide a floor for the British Pound moving forward. Will today’s data deliver? The GBPAUD has started to retrace part of its powerful advance which spanned almost 800 pips over a four week period. Will price action slide further to the downside and into support or will a breakout keep the rally alive?

On Monday, the single European currency backed down a bit on the eve of the meeting of the European Central Bank, which will be held later this week, at which new incentives are expected from politicians to support a weakening regional economy.  

Forex traders will get key UK data this morning which will include monthly GDP data for July, expected to show a small increase to finish the second-quarter. Industrial and manufacturing data is anticipated to come in flat for July, countered by small monthly gains in construction output and in the powerful service sector. Rounding up the range of economic data will be the trade balance for July which is favored to show a rise in deficits with the exception for the visible trade balance. How will the GBPJPY react after the release of today’s UK data?

New home loans as well as investment lending in Australia increased above expectations for July which added bullish momentum to the Australian Dollar. June’s data was also revised higher. China reported a smaller than expected trade surplus for August as exports posted a surprise contraction while imports decreased. This was largely due to a sharp contraction in exports to the US as a result of the trade war the Trump administration intensified over the past few weeks.

Forex traders will eagerly await the release of the August NFP report out of the US. Economists anticipate solid employment gains in the private sector with a minor slowdown in earnings on an annualized basis. Will today’s NFP report rally UD Dollar bulls after the sell-off we witnessed in September so far? The US Fed is expected to cut interest rates again this month and officials are watching the strength of the labor market as the global economy is slowing down as well as inflationary pressures from the wage sector. How will the USDCAD trade after the release of the August NFP report?

Japanese data released during the Asian morning trading session showed an increase in household spending for July, but at a sharply reduced rate as compared to June. This may be partially attributed to the unexpected contraction in labor cash earnings. The Japanese Yen extended its weakness which pushed the EURJPY further to the upside following its most recent breakout. Positive sentiment in regards to US-China trade talks have also caused risk-on traders to rotate out of safe-haven assets such as the Japanese Yen. How much longer can this uptrend last?

This Friday, market participants will focus on labor statistics from the United States. Employment in the non-agricultural sector (NonFarm Payrolls), Average Hourly Earnings, as well as the Unemployment Rate will determine the future direction of the US currency.  

The US and China confirmed that trade talks will resume in October, but will they actually yield positive results? Neither side has show willingness to cave to demands of the other and in the meantime the global economy continues to slow down. German factory order released this morning showed a much steeper contraction than economists expected. This partially negated the positive mood following yesterday’s upside surprise in Services and Composite PMI data out of the Eurozone. The EURUSD paused it bounce from yesterday and remains just below a minor resistance level.

The British pound rebounded from lows on Wednesday after the parliamentary debate, which opened the door for another delay with Brexit, while the dollar fell after weak manufacturing data fueled rates to aggressively weaken US monetary policy.  

Forex traders will focus on final Services and Composite PMI data out of the Eurozone with releases on nine different components across the continent. Monday’s Manufacturing PMI data confirmed previous readings for August and economists anticipate the same for today’s set of data. Key Eurozone retail sales for July will also be released where a monthly contraction is expected. What impact will this have on the EURAUD which is currently in the midst of a sell-off?

Pound sterling hit its lowest level since January 2017 amid growing investor concern over Brexit without a deal, while warring British lawmakers continued to struggle to control negotiations on leaving the European Union.  

The Reserve Bank of Australia, as widely expected, kept its key interest rate unchanged at 1.00% which kept the Australian Dollar at support levels near a decade low. Despite the ongoing trade war, the economic dependence on China and the overall slowing global economy, Australia managed to print a better than expected current account surplus in the second-quarter while the first-quarter deficit was revised higher. Consumer confidence rose in the latest weekly survey, but retail sales for July posted a surprise contraction.

On Monday, the Japanese yen strengthened due to increased investor appetite for safe-haven assets, as Washington and Beijing introduced additional export tariffs for each other, reinforcing the gloomy tones hanging over global economic prospects.  

Forex traders will start the new trading week with the final reading on August manufacturing PMI reports from Spain through Germany and the Eurozone as a whole. Economists anticipate no change from the previous data. The US and China have implemented their latest round of tariffs on each other yesterday, which will further disrupt the global supply chain. China seeks to diversify away from the US, will Europe be able to pick up the demand which will boost manufacturing across the continent?

New tariffs kicked in yesterday as the US and China both implemented their previously announced measures. China opted to implement tariffs to only about one-third of the 5,000 goods on the list with the rest scheduled for December 15th 2019. The US has also delayed tariffs on plenty of consumer goods until that day in order to bridge the key shopping season in the US. Chinese manufacturing data for August surprised to the upside and expanded against expectations for a contraction.

The Australian dollar fell to its 10-year low, mimicking the Japanese yen, which also fell to lows, as renewed hope that China and the United States will be able to return trade negotiations back on track.  

Japanese economic data this morning came in mixed as retail sales disappointed with a bigger than expected contraction and vehicle production contracted in July. On the bright side, July industrial production rebounded as the jobless rate decreased and new construction orders surged. The Japanese Yen was able to advance slightly after the release of the data which kept the USDJPY hovering just below resistance levels.

UK consumer confidence as well as as the Lloyds Business Barometer decreased further in August as Brexit is nearing and uncertainty over which type of Brexit will be delivered remains. The UK labor market remains strong and wage gains are at decade highs, economists expect that consumer borrowed at a stable rate as the housing market shows signs of a bottom. The British Pound has been drifting higher after bouncing off of support levels which pushed the GBPCAD into its next resistance level. Is bullish momentum strong enough for a breakout or will bears force a reversal?

New Zealand reported a duo of economic reports which showed that the economy cooled down further. After the central bank cut interest rates, forex traders try to determine if more cuts are on the horizon or what other measures will be deployed. The New Zealand economy is heavily dependent on commodity exports, mainly to China, as well as closely tied to the Australian economy. Australian economic data released this morning also showed a slower economy ahead.

While forex traders remain focused on developments in the US-China trade war as well as the Yuan, they will receive a heavy dose of economic data out of the Eurozone. CPI readings out of Spain and Germany will be closely watched by the ECB, but Eurozone confidence data is expected to move the Euro. Economists anticipate a further slowdown of all sub-components with the key Business Climate Indicator seen sliding further into negative territory. Will the EURUSD be able to advance off of strong support levels despite the expected negative tone in economic data?

The economic calendar was quite calm during today's Asian session. Statistics were limited to the Australian second-quarter construction release.  

How long will it take for the ECB to roll out more stimulus and what form will it take during the next round of quantitative easing? The Eurozone economy continues to struggle, led by its export engine Germany, and the ECB has noted that governments need to step in and help the central bank stimulate the economy. Germany has so far refused to change its constitution in order to allow more spending and claims there is no economic crisis which warrants this. Who will cave in first?

The yen rose on Tuesday as some investors tempered optimism about the prospect of an early end to the US-China trade war, and traders continued to avoid risky assets.  

Conflicting messages by US President Donald Trump and out of China have sowed more confusion about the state of the US-China trade war. While so called technical phone calls between both negotiating teams are common practice, Trump has claimed that a high level request has been made in order to resume trade talks. This has increased the layer of uncertainty for forex traders, but boosted demand for gold which continues to extend its stellar advance.

The Chinese yuan reached an 11-year low in continental trade and fell to a record low in offshore after a sharp escalation of the US-China trade war, which undermined investor confidence and overshadowed global economic prospects.