Forexlive European FX news wrap: China to approve a new fiscal package next week

• Iranian revolutionary guards threaten Israelis with surprises they have never seen before
• UK September mortgage approvals 65.65k vs 65.00k expected
• China mulls approving fresh fiscal package worth over ¥10 trillion next week
• DIHK warns that German economy is set to stagnate in 2025
• European equities hold higher to start the session
• What are the main events for today?
• BlackRock CEO says Fed will cut at least by 25 bps before year-end
• Eurostoxx futures +0.2% in early European trading
• Germany November GfK consumer sentiment -18.3 vs -20.5 expected
• US futures stay more muted so far on the day
• US reportedly have been declining to change language when discussing Taiwan independence
• Another light one on the data docket in Europe today
• FX option expiries for 29 October 10am New York cut
• UK reportedly open to restarting key trade dialogue with China
• Heads up: It’s a big week on the earnings calendar

Markets:

• GBP leads, CHF lags on the day
• European equities higher;
  S&P 500 futures down -0.12%
• US 10-year yields up 1 bps to 4.300%
• Gold
  up 0.28% to $2,749
• WTI
  crude up 1.44% to $68.35
• Bitcoin up 2.15% to $71,444

It’s been a slow session in terms of data releases and market moves. The main highlight is the news about China mulling to approve a new fiscal package next week worth over 10
trillion yuan which is expected to be bolstered further if Trump wins the
US election. That gave copper and chinese stocks a boost.

Other than that, we didn’t get anything notable. The playbook in the markets remains the same as we head into the US election with Treasury yields pushing higher and the US Dollar remaining supported. The US stock market continues to display a rangebound price action while gold, and especially bitcoin, keep pushing into new highs.

In the American session, the US Job Openings and the US Consumer Confidence will be the data to watch alhough given the market’s focus on the election, weak data might be faded, while strong data could add more fuel to the Trump trade.

This article was written by Giuseppe Dellamotta at www.forexlive.com.