Daily Brief, Oct 29: Economic Events Outlook – Brace to Trade Gold

Good morning, traders.

The US dollar slid on Monday, and the Japanese yen declined to a three-month low versus the US dollar as confidence that the US and China will strike a trade deal diminished demand for safe-haven currencies, and as traders await the Federal Reserve’s meeting this week. President Donald Trump announced he anticipated confirming a significant part of the trade agreement with China before time but did not embellish on the timing.

Today, the focus will stay on the CB Consumer Confidence as the rest of the calendar remains muted.

Economic Events Outlook

Mortgage Approvals – 09:30 GMT
The Bank of England will release Mortgage Approvals figures, which reports a number of new mortgages approved for home purchases during the previous month.
Overall, the data tends to have a muted impact because about 60% of all mortgages are covered by the BBA Mortgage Approvals data released a few days earlier.

USD – CB Consumer Confidence – 14:00 GMT
Investors will monitor the CB Consumer Confidence. Fellows, this data will be of high importance on Tuesday as this usually causes excellent tradeable volatility in the market. It’s expected to be 128.2 vs. 125.1, giving us a reason for a bullish dollar.

GOLD – XAU/USD – Safe Haven Demand Fades

The big news for the day was UK PM Johnson calling for an election on December 12, but the Labour Party was not keen on that. This hinted that the UK government has been planning to pull the Brexit deal off the table. On the European side, the EU was waiting for clarity among UK Parliament members before deciding to whether grant an extension or not. This raised the Brexit uncertainty and risk factor in the market.

Apart from Brexit, on Friday, Vice President Mike Pence commented on Hong Kong and China. He criticized the Chinese people over human rights and security and said that the United States stands with the protestors of Honk Kong. These comments from Vice President of the United States raised the chances of conflicts between China & the US, before their meeting at the APEC Summit in Chile for signing the phase one deal. The risk-off scenario created a demand for USD/JPY on Friday.

Most of the safe-haven appeal diminished after US President Donald Trump announced that he anticipates confirming a significant part of the trade agreement with China even ahead of schedule but did not embellish on the timing.

XAU/USD – Technical Levels
Support Resistance
1485.65 1503.9
1478.72 1515.22
1460.47 1533.47
Key Trading Level: 1496.97

Gold – Forex Trading Signal

Gold prices struggled to cross over 1,508 resistance level, and closing of a series of Doji candles triggered a sell-off in the market. At the moment, gold is likely to face support above 1,490 level, which is extended by bullish trendline on the 4 hourly charts. Bullish bounce can be expected above this level until 1,503, and bearish sell-off can be seen below 1,490 level until 1,482.

Good luck!