investingLive European FX news wrap: Gold extends losses

• Trump confirms meeting with China’s Xi on Thursday
• ECB survey: Inflation expectations for the year ahead decreased to 2.7% vs 2.8% prior
• Italy October business confidence 88.3 vs 87.5 expected
• China pledges to drive reasonable economic growth in the next five years
• Japan finance minister Katayama says had no direct talks with Bessent on monetary policy
• Germany November GfK consumer sentiment -24.1 vs -22.0 expected
• Gold drop looks to run deeper on break under $4,000
• FX option expiries for 28 October 10am New York cut
• Fed to cut rates again this week, then take a more risk management approach after – BofA
• USD/JPY dribbles lower as Trump comes to visit Tokyo
• US Treasury secretary highlights need for ‘sound’ monetary policy in talks with Japan
• Fed to cut rates and retain an easing bias this week – Morgan Stanley
• Japan/US preparing release of fact sheet including potential investment projects in the US

It’s been a pretty slow session in terms of data and news releases with nothing notable. In the markets, the biggest movers have been precious metals and the yen.

Gold and silver extended the losses as the US-China de-escalation started a week ago continues to weigh on the market. We have now completely erased the gains seen after Trump threatened 100% tariffs on China.

The yen, on the other hand, gained some ground following some positive US-Japan talks and some “hawkish” comments from US Treasury Secretary Bessent where he mentioned that conditions now are substantially different from the introduction of Abenomics. Something that was already mentioned here on investingLive three weeks ago.

Other than that, we just had Trump confirming the meeting with China’s Xi on Thursday and adding that it’s going to work out well.

This article was written by Giuseppe Dellamotta at investinglive.com.