China’s state news agency, Xinhua, reported on Saturday that both the US and Chinese trade teams had “constructive” discussions in Washington, as cited by Reuters. Xinhua added that the US and China agreed to keep communicating on related issues, and discussed the details of the next round of trade talks in October. However, no details of the discussions were provided by the Chinese news outlet. This comes despite the overnight reports that China’s agriculture delegation canceled the US farm visit to Montana and they returned to China sooner than expected. The above headlines sent the risk sentiment tumbling in the US last session, knocking-off the stocks in tandem with the Treasury yields. USD/JPY lost nearly 40-pips to close the week near four-day lows of 107.53. US Pres. Trump: Agricultural purchases will not be enough, we want a complete deal

EUR/USD ends the week in the lower part of its range but struggle to generate any meaningful breakdown. The level to beat for bears is the 1.1000 handle. EUR/USD daily chart The common currency, on the daily chart, is trading in a bear trend below its main daily simple moving averages (DSMAs). The Euro ends the week stuck in a two-week trading range as investors are waiting for the next catalysts. There will be a plethora of news announcements next week, including the Gross Domestic Product in the United States. Therefore, there is potential for volatility and the current range may get broken. EUR/USD four-hour chart EUR/USD is trading below its primary SMAs, suggesting a bearish bias in the medium term. The Euro has been ranging for most of the week. However, bears will probably try to break the 1.1000 handle to potentially reach 1.0965 and 1.0930 support level near the 2019 low, according to the Technical Confluences Indicator. EUR/USD 30-minute chart Bears will try to keep ..

West Texas Intermediate prices were trading -0.22% lower in the Wall Street close. West Texas Intermediate crude for October delivery lost by 4 cents, or 0.07%, to finish at $58.09. Can Saudi production be restored? West Texas Intermediate prices were trading -0.22% lower in the Wall Street close having edged lower from a high of $59.23 to a low of $59.97 while futures registered a sharp gain for the week, 6% higher and considerably higher on the attacks on Saudi Arabian production facilities last weekend which put into question how much spare capacity there will be left in the oil market leading to the biggest weekly gain in 3 months. As for futures, West Texas Intermediate crude for October delivery lost by 4 cents, or 0.07%, to finish at $58.09 a barrel on the New York Mercantile Exchange. The contract logged a 5.9% weekly advance, which was the biggest for the U.S. benchmark since the week ended June 21. Saudis revealed the extent of damages Oil eased back from the opening hi..

The Nasdaq Composite Index lost 65.20 points to reach 8,117.67, a decline of 0.8%. The Dow Jones Industrial Average lost 160.60 points, or 0.59%, at 26,934.19. The S&P 500 index dropped 14.89 points, or 0.5%, to 2,991.90. The technology sector dragged US stocks lower on Friday following the news that the Chinese delegation, visiting the US negotiators this week, cancelled plans to visit farms in Montana as a part of its negotiations with the U.S. delegation - President Trump declared he would not accept a partial trade deal. The benchmarks closed in the red for the first weekly decline in a month and the Dow Jones Industrial Average lost 160.60 points, or 0.59%, at 26,934.19, while the S&P 500 index dropped 14.89 points, or 0.5%, to 2,991.90. The Nasdaq Composite Index lost 65.20 points to reach 8,117.67, a decline of 0.8%. US data will also be key Looking ahead to next week, US data will be a keen focus following the Federal reserve's announcements earlier in the week. "Th..

Spot Gold was around 1% higher, travelling from a low of $1498.09 to a high of $1516.38. The Gold and Silver ratio added to the mid-week bullish correction. Silver prices inched higher to short term trendline resistance. Precious metals gained on Friday following the news that Chinese and US trade talks were cut short while troubles in the Middle East continue to concern investors, and US benchmarks closed in the red, fueling a flight to safety. Spot Gold was around 1% higher, travelling from a low of $1498.09 to a high of $1516.38 while Silver prices inched higher to short term trendline resistance, walking into the Wall Street close around 0.90% higher having travelled from a low of $17.75 to a high of $17.98. The Gold and Silver ratio added to the mid-week bullish correction, moving up from a low of 83.84 to a high of 84.71, around 0.30% higher on the day. As for futures, Gold for December delivery on Comex added $8.90, or 0.6%, to settle at $1,515.10 an ounce, after retreating..

The Greenback rose this Friday but remains trapped within its weekly range. The level to beat for bulls is the 98.55/98.68 resistance zone. DXY ends the week about 45 cents higher. DXY daily chart DXY (US Dollar Index) is trading in a bull trend above its main daily simple moving averages (DSMAs). In the last two weeks, the Greenback has been in a trading range around the 98.40 level as investors are waiting for a catalyst. DXY four-hour chart DXY is trading above the 50/200 SMAs, suggesting bullish momentum. The Greenback gained some relative strength this Friday as it broke above the triangle pattern. The market is retracing down and buyers will need to defend the 98.42 and 98.20 support if they intend to lift the market towards 99.10 and 99.38 resistances. The market would need a daily close beyond 98.68 to pull away from the trading range. DXY 30-minute chart DXY is trading above the main SMAs, suggesting bullish momentum in the near term. Support is seen at the 98.42 and..

Kaplan: Have pencilled in no further rate cuts this year, one rate cut next year. Rate cuts this year make it more likely 10-year yield will rise. Dallas Federal Reserve's President Robert Kaplan on Friday has been crossing the wires throughout the afternoon, earlier arguing that economies need a broader menu of other policy tools than just monetary policy, expecting the economy to expand by 2% in 2019 and around 1.7% in the second half of the year. In more recent trade, Kaplan has made the following remarks: Have pencilled in no further rate cuts this year, one rate cut next year. Agnostic about further rate cuts this year; Not opposed, nor leaning toward it. To be open-minded is watching how trade tensions unfold, does not want to prejudge. Rate cuts this year make it more likely 10-year yield will rise. Should ‘seriously examine’ plans to allow b/sheet increase with growth in demand for reserves. FX implications: In a world of central banks easing across all corners..

Analysts at CIBC expect the NZD/USD pair to trade at 0.64 during the fourth quarter and to rise later to 0.66 by the second quarter of 2020. They see that improving fundamentals could help Kiwi. Key Quotes: “Since the OCR cut in early August, NZD/USD has fallen to multi-year lows of 0.6269, pushed down by expectations of further rate cuts down the road. Business investment in the region remains lackluster, with the confidence index dropping to the lowest level since April, reflecting global trade tensions. Retail sales have also underperformed due to lower fuel sales. Consumer confidence improved in August to 118.2, but remains below the 120 historical average as declining house prices weigh on sentiment. We do not see these themes changing over the coming months, and as such, there’s less scope for an extension higher in NZD driven by improving fundamentals.” “The 50bps cut in August was far more aggressive than the market expected and was done to ward off the need for additional..

Analysts at Rabobank see the EUR/CHF pair moving toward 1.0800 on a 3-month view amid risk aversion. Key Quotes: “Compared with the commentaries produced by its peers, the outlook painted by the SNB’s policy statement on September 19 was one of the gloomiest. Weaker growth and inflation prospects abroad combined with the stronger CHF contributed to a low forecast for domestic price pressures. Growth forecasts were also revised down. Despite this the SNB provided no indication that it was ready to push rates further into negative territory. Like the BoJ and the ECB, it is concerned about the negative impact of negative rates on the banking sector and announced a revision in how the exemption threshold for banks is calculated.” “The CHF popped higher on speculation that the SNB may be lacking the tools to take fresh policy decisions to offset economic headwinds and safe haven demand for the CHF. We see risk of EUR/CHF edging towards 1.08 on a 3 month view largely on anticipation of ..

Analysts at Danske Bank explained that after two weeks of central bank action, focus will likely turn to the real economy, starting with the PMI and the Ifo. They point out it will be interesting to see if the service sector can continue to support growth despite the weakness in manufacturing. Key Quotes: “In the euro area, the most important data release next week is the PMI figures for the euro area and Germany on Monday. Last month, the manufacturing PMIs ticked up in both the euro area and Germany. However, both remain two-speed economies, with the service sectors shielding growth from the weak manufacturing sectors. With new orders improving slightly in August, we expect the manufacturing PMI to remain broadly stable at 47.0 in September. However, we see downside potential for the service print after the drop in business expectations last month and expect it to decline to 53.0.” “On Tuesday, we get German Ifo prints for September. Both the expectations and current situation co..

Data released today showed that retail sales in Canada rose 0.4% in July, slightly below the +0.6% expected. According to Jocelyn Paquet, analyst at National Bank of Canada, the economic numbers suggest household consumption on goods may not contribute much to GDP growth in July. Key Quotes: “The Canadian retail data for July came in weaker than expected. Although headline sales advanced for the first time in three months, most of the improvement stemmed from the motor vehicle/parts category. Without the latter, consumer outlays actually retreated slightly. Year on year, ex-auto sales slowed to just 0.5% in July, highlighting the recent malaise of Canadian consumers.” “Real sales stalled in July while ex-auto sales retraced 0.4%. These results suggest household consumption on goods may not contribute much to GDP growth in July (due to come out on October 1st). This may also be the case in Q3 as a whole, with retail sales volumes currently on pace for just a marginal expansion in the..

Stocks hit fresh lows and Yen gains momentum after Chinese officials cancel visit to view US agriculture. USD/JPY consolidates weekly losses as risk sentiment deteriorates. The USD/JPY fell during the American session following reports that the Montana Farm Bureau said China's delegation has canceled a planned trip to view US agriculture. According to the media, Chinese officials will return to their country sooner than expected. The pair dropped to 107.60, reaching the lowest level since September 16. Gold prices rose and Wall Street turned red. The Aussie printed fresh lows across the board. The report triggered risk aversion at the end of the week and also after US President Trump mentioned that Chinese agricultural purchases will not be enough, adding he wants a complete deal. Rally ends on central bank’s weeks After hitting the strongest level in a month near 108.50, USD/JPY reversed and it is about to end the week lower, after Federal Reserve and the Bank of Japan ..