Risk markets edged higher this morning as risk sentiment continued to take over after confirmations that new U.S.-China trade talks would take place and as political tensions in the U.K. and Hong Kong showed signs of easing. Several issues seemingly seemed to have “improved” yesterday, with Chinese PMI data coming in fairly decent, a withdrawal of the extradition bill in HK, the stopping of Boris Johnson in the UK and confirmation of further trade talks on ministerial levels between China and the US in October, all of which helped to turn the sentiment on. One should keep in mind however, that US VP Pence said Trump will continue to take a strong stand on China.
Boris Sobers Up
Yesterday, the British Parliament voted to take a no-deal Brexit option off the table, causing Prime Minister Boris Johnson to disillusion himself. Lawmakers also rejected Mr Johnson’s request for a snap election — at least until the no-deal measure becomes law. We would still expect an eventual election, in the coming weeks or months. UK PM Johnson is still fighting but it looks like he has run out of asses up his sleeve to turn things around and push through his no-deal Brexit agenda.
Forex Preview: CAD Gains
In today’s forex markets the CAD gained momentum on stronger oil prices and solid comments from the BoC at its latest central bank meeting. The Bank of Canada was not seen as very dovish, with today’s standards, “neutral” could now be considered the new “hawkish” which is why the CAD was able to gain well. Safe-haven currencies slipped with the JPY and USD trading lower while other currencies gained on the newfound USD weakness. Specifically, the EUR traded higher on good European PMIs--the first in a long time, and despite Lagarde clearly stating that there will be many more years of accommodative policy by the ECB. The GBP jumped through the roof on PM Johnson's current defeat. Today many traders will eye the Services PMI in the US for direction on the USD since services make up the majority of the US' economy.
Oil Prices Edge Higher, Gold Dips
Oil prices rose on the back of newfound risk appetite, rebounding from earlier losses after the U.S. confirmed that talks with China could reach a trade agreement. Gold prices dipped this morning as risk markets gained but XAU/USD still held above a crucial $1540 level, in a sign that investors do not feel confident to move away from safe havens which is a sign that we should take very seriously given the volatile state of current affairs. Elsewhere, bitcoin defended the support around 10.35k but couldn't re-test a break of the 10.7k level. Either of these two levels is likely to influence the next move significantly.
Watch the video here:
Boris Sobers Up
Yesterday, the British Parliament voted to take a no-deal Brexit option off the table, causing Prime Minister Boris Johnson to disillusion himself. Lawmakers also rejected Mr Johnson’s request for a snap election — at least until the no-deal measure becomes law. We would still expect an eventual election, in the coming weeks or months. UK PM Johnson is still fighting but it looks like he has run out of asses up his sleeve to turn things around and push through his no-deal Brexit agenda.
Forex Preview: CAD Gains
In today’s forex markets the CAD gained momentum on stronger oil prices and solid comments from the BoC at its latest central bank meeting. The Bank of Canada was not seen as very dovish, with today’s standards, “neutral” could now be considered the new “hawkish” which is why the CAD was able to gain well. Safe-haven currencies slipped with the JPY and USD trading lower while other currencies gained on the newfound USD weakness. Specifically, the EUR traded higher on good European PMIs--the first in a long time, and despite Lagarde clearly stating that there will be many more years of accommodative policy by the ECB. The GBP jumped through the roof on PM Johnson's current defeat. Today many traders will eye the Services PMI in the US for direction on the USD since services make up the majority of the US' economy.
Oil Prices Edge Higher, Gold Dips
Oil prices rose on the back of newfound risk appetite, rebounding from earlier losses after the U.S. confirmed that talks with China could reach a trade agreement. Gold prices dipped this morning as risk markets gained but XAU/USD still held above a crucial $1540 level, in a sign that investors do not feel confident to move away from safe havens which is a sign that we should take very seriously given the volatile state of current affairs. Elsewhere, bitcoin defended the support around 10.35k but couldn't re-test a break of the 10.7k level. Either of these two levels is likely to influence the next move significantly.
Watch the video here:
