All Eyes on the G20 Summit as China Puts its Foot Down [Video]


Active Trader
Aug 10, 2017
Limassol - Cyprus
The words of ceasefire were not really echoed in the Chinese side yesterday, which clearly stated their terms for further trade talks are removal of tariffs and the removal of the ban on Huawei. China’s Xi Jinping warned against protectionism and its threat to the global economy ahead of today’s all-important G20 meeting. It seems unlikely that China and the US will have a very fruitful meeting this weekend at the G20 summit, which makes the risk of large gap over this weekend very possible.

Markets Look for Direction
EU bourses started the day fractionally higher on Friday as investors focus on the G-20 summit and any developments on the ongoing US/China trade war. It is important to note that Japan is also on Trump’s agenda who plans to talk trade with Japanese Prime Minister Shinzo Abe as they meet on the sidelines of the summit, with Washington pushing to cut its big trade deficit.

UK Braces for No-deal Brexit
Meanwhile, in the UK, Boris Johnson is preparing an emergency no-deal budget giving the non-orderly crash-out of the UK from the EU a new manifestation. It should be noted that Johnson told his cabinet that they will have to sign up to leaving the EU on October 31st, even if that means a no-deal exit.

Forex Preview: GBP Remains Subdued
The dollar edged slightly lower ahead of the G20, lacking any significant momentum. Elsewhere the EU remained well supported adding 0.2% against the greenback and the GBP as of 8:55 GMT this morning. The sterling continues to remain subdued as the no-deal Brexit threat weighs on the currency.

Oil Prices Slightly Lower
Oil prices traded slightly lower ahead of an OPEC meeting next week and G20 summit. U.S. West Texas Intermediate (WTI) crude futures were down 15 cents, or 0.2%, at $59.28 a barrel as of 9:00 GMT this morning, stuck slightly above its 200-day moving average.

Gold Supported by Market Uncertainty, BTC Recovers
Gold prices jumped this morning, heading for their best month in three-years, as market uncertainty spreads ahead of the G20 summit. Spot gold remained well supported above the $1,400 mark looking possibly gain more if the G20 fails. Bitcoin remains hugely volatile with a big correction of around 30% between its high and low yesterday. A massive crypto sell-off sent shockwaves in the alt-coin markets yesterday after news that hackers stole $4.5M from Singapore-based Bitrue. Today, BTC is now recovering again at above $11,400 keeping its ambition to possibly head further upwards.


Watch the video here: