European stocks opened cautiously higher on Tuesday after President Trump said that he had already resumed trade talks with China. Trump added that he would hold back on new tariffs on China and offered to ease restrictions on tech company Huawei but added that any deal would need to be somewhat tilted “in Washington’s favour”. The broader market euphoria brought upon by the China-US deal seems to have begun to fade by now and reports of the US wanting to impose tariffs on the EU are now spreading concern in the markets. EU and US bourses might be in a bit of a corrective mood for now until we get new impulses on trade or the Fed's intention to cut rates at its next meeting.
Forex Preview: USD Stabilises
The USD/JPY pair extended its sideways corrective price action on Tuesday. It is important to note that the USD got a good push yesterday as it might have been too aggressively pricing in a bigger rate cut for the next Fed meeting. Elsewhere, the AUD remained somewhat stable after interest rate had been lowered to 1.0%. The RBA did cut rates by 25bps to a record low of 1% this morning but was surprisingly less negative about the global economic outlook which helped the AUD for push temporarily upwards. Meanwhile, the EUR is suffering from USD strength but also weaker PMIs and a seemingly divided leadership not able to find an agreement on who is to lead the European Commission and the European Central Bank.
Oil Prices Continue to Head Higher
Oil prices found a good balance at present prices which could change quickly if the Iran situation changes. Meanwhile, OPEC+ appears to be en-route to agree to a 9-month extension of the production limits and thus is keeping the price of oil afloat. Watch for the API's tonight for more direction.
Gold Corrects, Bitcoin Breaks Lower
Gold prices recovered some of their previous losses to last trade slightly below the $1,400 mark but still strong given the overall USD strength in the market. Gold prices are expected to remain supported as concerns over global economic growth continue to haunt investors. Weak global manufacturing data and U.S.-European trade ructions have confirmed global economic slowdown outlook fears. Elsewhere, BTC broke the $10,4k mark to the downside and also the $10k which could lead to further losses to a 38.2 Fibonacci level around $9,300.
Watch the video here:
Forex Preview: USD Stabilises
The USD/JPY pair extended its sideways corrective price action on Tuesday. It is important to note that the USD got a good push yesterday as it might have been too aggressively pricing in a bigger rate cut for the next Fed meeting. Elsewhere, the AUD remained somewhat stable after interest rate had been lowered to 1.0%. The RBA did cut rates by 25bps to a record low of 1% this morning but was surprisingly less negative about the global economic outlook which helped the AUD for push temporarily upwards. Meanwhile, the EUR is suffering from USD strength but also weaker PMIs and a seemingly divided leadership not able to find an agreement on who is to lead the European Commission and the European Central Bank.
Oil Prices Continue to Head Higher
Oil prices found a good balance at present prices which could change quickly if the Iran situation changes. Meanwhile, OPEC+ appears to be en-route to agree to a 9-month extension of the production limits and thus is keeping the price of oil afloat. Watch for the API's tonight for more direction.
Gold Corrects, Bitcoin Breaks Lower
Gold prices recovered some of their previous losses to last trade slightly below the $1,400 mark but still strong given the overall USD strength in the market. Gold prices are expected to remain supported as concerns over global economic growth continue to haunt investors. Weak global manufacturing data and U.S.-European trade ructions have confirmed global economic slowdown outlook fears. Elsewhere, BTC broke the $10,4k mark to the downside and also the $10k which could lead to further losses to a 38.2 Fibonacci level around $9,300.
Watch the video here:
