U.S. stocks retreated from the highest levels of Friday as headlines from wire services of President Donald Trump's Oval Office comments suggest doubt on progress on U.S.-China trade talks. In a letter written by Xi Jinping and read out by Trump, the Chinese leader said he hopes the two sides "redouble efforts to meet half way." Trump meanwhile said perhaps he and Xi will work out the final points or perhaps not. U.S. Trade Representative Robert Lighthizer said a few "very big" hurdles remain. The Chinese delegation will stay two additional days, Treasury Secretary Steven Mnuchin said.
Bitcoin prices rose on Friday, clawing back losses from the previous session putting the cryptocurrency on track for its best week in two months.
The U.S. dollar slips into negative territory on Friday as investors await new developments on the U.S.-China trade front.
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1334.
On Thursday, St. Louis Fed President James Bullard told CNBC he thinks interest rate hikes and the reduction of bond holdings is near an end. He also said he expects a timetable to be finalized in “the next couple of months.” He also added that interest rates now are “a little too high.”
London indexes were up on Friday, as heavyweight FTSE 100 miners and investors optimism over trade negotiations between the U.S. and China drove markets upward.
Euro zone headline consumer inflation slowed slightly in January because of a sharp deceleration of energy price growth, but core inflation watched closely by the European Central Bank in policy decisions edged slightly higher, data showed on Friday. The European Union's statistics office Eurostat said consumer prices in the 19 countries sharing the euro fell 1.0 percent month-on-month in January for a 1.4 percent year-on-year rise, in line with previous estimates and market expectations. Without the volatile components of energy and unprocessed food, or what the ECB calls core inflation, prices fell 1.2 percent month-on-month for a 1.2 percent year-on-year increase, accelerating from 1.1 percent in annual terms in December.
What goes up, has to eventually go down. That truth can be currently seen on Gold, where we do have a strong bearish correction. The downswing did not start in a random place. Sellers attack precisely on the upper line of the channel up formation. Current drop is aiming the lower line of this pattern along with the horizontal level around 1315 USD/oz. Price getting there is almost certain as the current bounce is really small and it seems that sellers currently have all what it takes to fully control the situation.
The gold prices fell lower during Thursday’s session, reaching down the $1325 level as the market has been in a bit overbought condition. The silver prices have pulled back during the yesterday’s session, breaking below the $16 level to reach down towards the $15.80 level. The crude oil prices traded back and forth during yesterday’s session, as it is witnessing a bit of resistance above.
The pair witnessed a bit of selling from the 1.1350 level in Thursday’s session, as it reached down towards the 1.1320 level. The area above is expected to remain noisy and volatile as the resistance extends up to the 1.14 level. Short term pullbacks in the market will continue to attract a lot of attention and also the Federal Reserve’s soft attitude towards rate hike will support the pair going higher. …Read MoreGBP/USD
The focus will be on Federal Open Market Committee member remarks. Traders don’t expect members, Williams, Clarida, Bullard and Quarles to waiver too much from the Fed’s decision to remain “patient” when making interest rate decisions. Furthermore, we could also find out more information on what the Fed plans to do with its balance sheet.
GBPUSD to trade range bound owing to lack of directional bias but headlines points to a possibility of the bearish breakout in near future.
Based on yesterday’s low and today’s early price action, the direction of the AUD/USD on Friday is likely to be determined by trader reaction to the main 50% level at .7079.
U.S. futures pointed to a higher opening bell on Friday, as the U.S. and China continue to work towards a trade deal before tariffs on Chinese goods are increased on March 1. While the world's two largest economies have made progress, there still remain many gaps between the two sides, The Wall Street Journal reported. “It’s one thing to write something on a piece of paper,” Secretary of State Mike Pompeo said on Fox Business Network on Thursday.
The pair is to continue range bound action for a majority of the day but likely to see a change in momentum post-speech by central bank members later in the day.
Based on the early price action, the direction of the NZD/USD on Friday is likely to be determined by trader reaction to a pair of Gann angles at .6814 and .6799.
A choppy start to the day sees the Aussie Dollar on a rollercoaster. The focus will be on economic data out of the Eurozone, trade talks and Brexit.
Based on the early price action, the direction of the USD/JPY on Friday is likely to be determined by trader reaction to the short-term pivot at 110.693.
The dollar was steady and on track for its first weekly loss in a month in early trading in Europe Friday, although it had recovered most of the ground it lost Thursday in reaction to some weak numbers from the U.S. manufacturing sector.
Investing.com - Gold prices were little changed on Friday in Asia as traders weighed the latest positive trade news and a set of weak U.S. data.