The incoming trade-related headlines continued driving the broader market risk sentiment through the Asian session on Thursday. The safe-haven currencies – like the Japanese Yen and Swiss Franc – gained some traction on reports that the crucial high-level trade talks will finish a day earlier. The South China Morning Post said that the Chinese delegation, led by Vice Premier Liu He, was planning to leave Washington a day early, though CNBC reported that the White House was unaware of any such plans.   Meanwhile, a Bloomberg report that the US is considering a currency agreement with China as a part of partial trade deal led to an intraday turnaround in the risk sentiment and forced traditional safe-haven assets to surrender a major part of the early gains. The positive headlines helped trade-sensitive antipodean – the Australian and the New Zealand Dollar – to reverse an early dip to weekly lows and turn higher for the day. The recent price action offers a preview of the market reaction that might follow at the end of the crucial high-level US-China trade negotiations.   On the other hand, the US Dollar remained on the defensive amid firming market expectations that the Fed will deliver another interest rate cut at its upcoming policy meeting on October 29-30. Minutes of September FOMC meeting, released on Wednesday, noted that downside risks to the outlook for economic activity has increased somewhat and did little to influence dovish expectations. A weaker tone surrounding the Greenback further helped the shared currency to gain some positive traction and also assisted the Sterling to stage a modest recovery from sub-1.2200 level, or one-month lows tested again on Wednesday.US and China make no progress on key trade issues in two days of deputy-level talks – SCMP Sources   Conflicting trade talk headlines: White House Spokeswoman claims SCMP is inaccurate, Fox Business say’s its not – CNBC   US considering a currency agreement with China as part of partial trade deal – Bloomberg   President Trump to allow some sales to China’s Huawei – The New York Times   US commerce Secretary Wilbur Ross: China trade practices have gotten worse   Brexit headlines centred around a Brexit extension/general electionApart from the incoming trade-related headlines, Thursday’s important release of the latest US consumer inflation figures will influence the USD price dynamics and produce some meaningful trading opportunities. From the UK, the release of monthly GDP print along with manufacturing and industrial production figures will play a key role in driving the British Pound. Barring any knee-jerk move, the market reaction to the UK macro data is likely to remain limited amid persistent uncertainties surrounding Britain’s exit from the European Union.   EUR/USD: Probing key hurdle on trade optimism, ECB minutes eyed The pair eked out 0.16% gains in Asia, as the markets offered US Dollars on trade optimism generated by a Bloomberg report stating that the US is planning to enter into a currency agreement with China. Further, The New York Times reported that the Trump administration may issue licenses that will allow some US companies to supply products to China’s Huawei.   GBP/USD holds comfortably above 1.2200 mark ahead of UK macro data Following the previous session’s rollercoaster ride, the GBP/USD pair managed to regain some positive traction on Thursday and was last seen trading around the 1.2225-30 region. Bulls continued showing r

Karen Jones, analyst at Commerzbank, explains that EUR/USD pair continues to hold steady having recently recovered from the base of the weekly channel at 1.0892 currently.“We have 13 counts on the daily and weekly charts and suspect that the market is attempting to base near term. It will need to close above the 4 month downtrend at 1.1017 to confirm that stance and alleviate downside pressure. This would trigger recovery to the mid-September high at 1.1110.”“A close above here would confirm a bottoming formation and put the 200 day ma at 1.1222 back on the cards.”“Below 1.0879 we have the January 2017 low at 1.0829 and the 78.6% Fibonacci retracement of the 2017-2018 advance at 1.0814.”Forex Crunch is a site all about the foreign exchange market, which consists of news, opinions, daily and weekly forex analysis, technical analysis, tutorials, basics of the forex market, forex software posts, insights about the forex industry and whatever is related to Forex.Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader’s level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch’s authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of such information. .

In light of advanced data for EUR futures markets from CME Group, open interest rose for the third consecutive session on Wednesday, this time by just 750 contracts. On the other hand, volume extended the choppy performance and shrunk by 47.6K contracts.EUR/USD remains unable to surpass the key 1.10 handle for the time being. Further consolidation is supported by the erratic activity in volume, although positive price action and rising open interest still keeps a potential visit to 1.10 on the table in the near term.Forex Crunch is a site all about the foreign exchange market, which consists of news, opinions, daily and weekly forex analysis, technical analysis, tutorials, basics of the forex market, forex software posts, insights about the forex industry and whatever is related to Forex.Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader’s level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch’s authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of such information. .

Matthew Hassan, analyst at Westpac, suggests that Australia’s August housing finance approvals update was a mixed bag with the number of owner occupier loan approvals undershooting expectations but another strong gain in the total value of investor loans.“The big picture is still of a clear lift in finance activity since mid year – boosted by interest rate cuts and the reduced uncertainty around tax policy following the Federal election – but the mix is pointing to more evenly spread gains across owner occupiers and investors.”“The number of owner occupier loans rose 0.7% in the month, considerably softer than the consensus forecast of a 2.3% gain but following a robust 4.4% increase in July and broadly consistent with a consolidating upturn. Approvals are down –5.1%yr but have now risen 5.9% from their April low.”“The value of investor loans posted a much stronger 5.7% gain in the month following a 4.2% rise in July to be up over 10% in just two months, albeit still 13% below the levels seen a year ago.”“The total value of owner occupier and investor loans rose 2.9%mth, –5%yr.”“Overall, the picture from finance approvals is consistent with the upturn in auction market activity, prices and turnover and looks likely to carry into the months ahead. The main note from today’s data is that the turnaround is being driven by both owner occupiers and investors – although the latter is coming from a much weaker starting point having been the main driver of the preceding downturn.”Forex Crunch is a site all about the foreign exchange market, which consists of news, opinions, daily and weekly forex analysis, technical analysis, tutorials, basics of the forex market, forex software posts, insights about the forex industry and whatever is related to Forex.Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader’s level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch’s authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of such information. .