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Here is what you need to know Monday, October 14th:

Financial markets are revolving around the US-China trade war and Brexit. By the end of last week, speculative interest was optimistic about both. Headlines related to those issues will continue to lead the way for major currencies.

  • US President Donald Trump  announced that trade talks have come to “substantial phase one deal with China,” boosting risk-yieldings in the detriment of the greenback. It is unclear whether the US will apply the next round of programmed tariffs, as US Secretary Mnuchin said they won’t be forward, although Trade Representative Lighthizer said later that Trump didn’t make a decision on the issue yet.
  • The EU27 has given a green light to Chief Negotiator Barnier to reopen a negotiation channel to try to clinch a new deal ahead of this week’s key EU Summit, and prevent the UK from crashing out of the EU without a deal by month-end.
  • The EUR/USD pair recovered the 1.1000 level, but the recovery remained shallow when compared to other high-yieldings. Same goes for AUD/USD, which recovery was even more tepid, amid ECB’s and RBA’s dovish stances. The GBP/USD pair was the overall winner, having flirted with 1.2700.
  • The Canadian dollar soared amid a solid employment report, higher oil prices.
  • Safe-havens came under selling pressure, with gold extending its decline well below the $1,500.00 threshold.
  • Crude oil prices recovered alongside equities, although WTI remains below $55.00.
  • US Treasury yields, stocks, recovered sharply by the end of the week amid prevalent optimism about possible positive resolutions to the mentioned issues.
  • Cryptocurrencies continued struggling for direction over the weekend, extending their consolidative phase after the latest slump.