Forex Updates
FOREX BRIEF:
The U.S. dollar and the Japanese yen fell on Wednesday on reports that the Italy government is aiming to cut its budget deficit to 2% of GDO in 2021. The government forecasted a deficit of 2.4% in 2019 and 2.2% in 2020.
The EUR/USD pair has bounced off the support in the 1.15 region as was widely expected and now trades just below the 1.16 region as of this writing.
The British pound broke down during the session on Tuesday, breaking below the vital 1.30 level in the previous uptrend line. This is a very negative turn of events, but as we record starting to see signs of life again already.
The Australian dollar fell during the trading session on Tuesday, breaking below the 0.72 level in early trading. However, as we flip over to the American session, it looks as if we are going to show some resiliency.
The NZD/USD continues to trade to the downside in thin Wednesday markets, ticking into 0.6570 after Tuesday's similar slide as the Kiwi makes its way down the charts as broader markets seek safer havens amidst trade war turmoil.
COMEX BRIEF:
Oil prices were mixed on Wednesday morning in Asia as U.S. crude inventories increased and markets prepared for oil production in the country to grow. The American Petroleum Institute (API) said on Tuesday that U.S. commercial crude inventories advanced by 907,000 barrels in the week to Sept. 28 to 400.9 million.
Gold prices surged more than 1% on Tuesday, climbing back above the psychologically important $1,200 level amid increased safe-haven demand as concerns over Italy’s fiscal issues hit financial markets. Investor concerns over Italy intensified Tuesday after the head of the lower house's budget committee said the country would have solved its fiscal problems with its own currency.