US-Russia peace talks on Ukraine canceled?

According to some media outlets, the meeting between President Trump and President Putin which was set to occur in Budapest appears to have fallen through. Specifically, per the Financial Times, “A summit between Donald Trump and Vladimir Putin to end the war in Ukraine has been cancelled, the White House confirmed on Tuesday.” In turn the cancellation of the meeting between President Trump and President Putin may imply that peace talks are not going to occur in the near future. Hence, the cancellation of the summit may have aided gold prices.In the UK the nation’s CPI rates for September were released earlier on today and came in lower than expected with the headline rate coming in at 3.8% and the core rate coming in at 3.5%. The lower than expected inflation print for the UK tends to showcase that the inflation rate in the UK failed to accelerate and thus may increase pressure on the bank to refrain from adopting a more hawkish stance. In turn, this may have weighed on the sterling as the BoE could opt for a more “dovish” approach to their monetary policy in the future.In Asia, Japan’s trade data for September was released during today’s Asian session and tended to show a widening trade deficit, with the trade balance figure coming in at -234.6B versus the expected 22.0B. The widening trade deficit may have potentially weighed on the JPY. In the UK Equities markets, Barclays has announced a ₤500 million share buyback plan. The bank’s share buyback plan may aid the company’s stock price.Per Bloomberg, China has requested today that some US semiconductor firms submit sensitive information about their sales, as part of China’s probe of its American suppliers. In our view the continued probing of American businesses tends to showcase the widening rift between the US and China.

XAU/USD appears to have dropped from it’s all-time high figure with the commodity having dipped close to 4k per troy ounce. We now opt for a short term sideways bias for the commodity’s price and supporting our case is the apparent diminished bullish momentum which has been aiding the commodity’s price. In particular, we take a look at our RSI indicator below our chart which the figure having dipped below 50, the MACD indicator where the MACD line has crossed below the signal line which tends to imply bearish tendencies. Moreover, the +DI and -DI appear to be converging, which could further amplify the rhetoric that the bullish momentum may be easing. For our sideways bias to be maintained we would require the commodity’s price to remain confined between our 3980 (S1) support level and our 4135 (R1) resistance line. On the other hand, for a bearish outlook we would require a clear break below our 3980 (S1) support level with the next possible target for the bears being our 3895 (S2) support level. Lastly, for a bullish outlook we would require a clear break above our 4135 (R1) resistance line with the next possible target for the bulls being our 4250 (R2) resistance level.

EUR/USD appears to be moving in a downwards fashion. We opt for a bearish outlook for the pair and supporting our case are the RSI, MACD and ADX with DI indicators below our chart. For our bearish outlook to continue we would require a break below our 1.1480 (S1) support level with the next possible target for the bears being our 1.1330 (S2) support line. On the other hand for a sideways bias we would require the pair to remain confined between our 1.1480 (S1) support line and our 1.1650 (R1) resistance level. Lastly, for a bullish outlook we would require a clear break above our 1.1650 (R1) resistance level if not also our 1.1815 (R2) resistance line with the next possible target for the bulls being our 1.1980 (R3) resistance level.

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Today we note the release of the UK’s CPI rates, the speech by ECB De Guindos and ECB President Lagarde, the weekly EIA crude oil inventories figure and finally the speech by Riskbank Governor Thedeen.