Here is what you need to know on Wednesday, October 16:
- Brexit negotiations: The UK and the EU seem close to a deal that includes an open border on the island of Ireland and a customs border in the Irish Sea. Some dub the accord as "Theresa May's deal with lipstick" – implying significant concessions from UK Prime Minister Boris Johnson. The Northern Irish Democratic Unionist Party (DUP(has concerns while hardline Brexiteers seem to be on board. Talks in Brussels continue with Chief EU Negotiator Michel Barnier to brief diplomats on progress around 12:00 GMT. Late in the day, the PM will brief his Conservative Party. The aim is to declare a deal in the EU Summit on Thursday. GBP/USD has dropped from the highs near 1.28. More: Brexit: Five outcomes and GBP/USD reactions as a deal may become real
- Hopes for an accord have impacted the market sentiment beyond the pound and the UK. The yen reached multi-month lows, EUR/USD advanced, and gold came under pressure.
- Trade: China has demanded that the US remove US tariffs and say that otherwise, it cannot reach the target of buying $50 billion worth of agricultural goods. Moreover, the world's second-largest economy is unhappy with the intention of American lawmakers to support protesters in Hong Kong. USD/JPY that was carried higher amid Brexit hopes has retreated.
- US Retail Sales for September stand out on the economic calendar. Moderate increases in all measures are expected, confirming the strength of the American consumer. See US Retail Sales Preview: Stronger consumer sentiment may tilt consumption higher
- UK Consumer Price Index is set to rise, final euro-zone CPI to be confirmed at low levels, and Canadian inflation to drop on a monthly level. Mark Carney, Governor of the Bank of England, will participate at a panel discussion and will likely refrain talking about Brexit. Jens Weidmann, President of the German Bundesbank, may continue criticizing the decision to restart the European Central Bank's bond-buying scheme.
- The Federal Reserve publishes its Beige Book later today. Alongside speeches from several Fed officials, markets will try to gauge if the bank will cut rates later this month.
- Cryptocurrencies have been consolidating losses suffered on Tuesday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.