Yuan firms on trade talk hopes

12 December, 2018

A sense of stability returned to financial markets on Tuesday as investors swept aside geopolitical risk factors to focus on progress in trade talks between the two largest economies in the world.

The overall market mood received a boost following reports of top US and Chinese officials discussing over the phone the “promotion of the next economic and trade consultations”. However, global sentiment later took a hit after Donald Trump threatened to shut the Federal government over border security. Although easing trade tensions are seen injecting equity bulls with fresh inspiration, the upside is poised to face numerous headwinds down the road. With concerns over plateauing global growth, heightened political risk in France, Brexit turmoil and other geopolitical tensions weighing on markets, global stocks remain in the firing line.

In the currency markets, the Chinese Yuan appreciated against the Dollar amid renewed hopes of trade talks between the world’s two largest economies. With the Greenback likely to be pressured by expectations over the Fed taking a pause on rate hikes next year and soft domestic economic data, this is good news for the Yuan. If easing trade tensions end up boosting risk sentiment, the Dollar is poised to weaken further. In regards to the technical picture, the USDCNY has the potential to hit 6.8850 in the near term.

Appetite towards the battered Pound diminished further following news wires that Prime Minister Theresa May could be facing a vote of no confidence. With this development fuelling uncertainty and stimulating fears of a no-deal Brexit outcome, the outlook for the Pound remains heavily bearish. Focusing on the technical picture, the GBPUSD is bearish on the daily and weekly charts. The sharp breakdown below 1.2700 has placed bears in a firm position of control with 1.2500 acting as the next significant point of interest.

Gold prices are slightly shaky and wobbly due to stabilizing Dollar. However, prospects of the Federal Reserve taking a pause on interest rates next year limited downside losses on the yellow metal. The near-term outlook for Gold will be heavily influenced by the Dollar’s performance. With the pending inflation figures from the United States likely to impact the Greenback, there could be some action on Gold today. In regards to the technical picture, prices remain in an upward trend on the daily charts with support found at $1,240. Bulls have the ability to attack $1,250.70 and beyond as long as $1,240 proves to be a reliable support level.


Source link  
Apple shares tumbled nearly 2%

Apple shares tumbled nearly 2% on Monday despite the company unveiling a series of new services at its campus in Cupertino, California. The technology giant...

Asia joins Friday's sell-off

The selloff in US and European stock markets from Friday has spread across Asia at the start of the new trading week, as concerns over the health...

Recovery of emerging markets

The recovery that emerging markets have managed to build throughout the first quarter of 2019 is set to extend further after the downbeat...


Will the old saying 'third time's a charm'?

The past trading week has overall been a grueling week of swings in either direction for the British Pound. In what's been a pivotal week for Brexit...

Pound at highest level since June 2018

It has been yet another dramatic 24 hours of swings both higher and lower for the British Pound as volatility continues in the lead up to the fast...

Brexit remains primary driver for Pound

What's it going to take to appease UK lawmakers on Brexit? Prime Minister Theresa May clearly hasn't been able to find a solution to that...


Pound climbs on 'improved' Brexit deal

The Pound has successfully managed to conclude a recent run of seven consecutive days of declines and has commenced the new trading week with...

Is the bull market under threat?

It has been a decade since the bull market started back in March 2009. If you dared to invest back then in the US's largest 500 companies, you would have earned...

ECB decision alerts Euro sellers

The EURUSD sank below the 1.13 only to pare back losses, after the European Central Bank confirmed reports and decided to offer cheap loans to banks...


In the past 24 hours Bitcoin has lost -1.77% and reached $3950.01755786. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.4259% and is now at $1.1296. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -4.07% and is now at $134.390696601. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Forex Market Analysis



Forex Currencies Forecasts



Top 10 Forex Brokers 2019

# Broker Review
1easyMarketseasyMarkets91%
2FXTMFXTM89%
3HYCMHYCM88%
4FxProFxPro86%
5FIBO GroupFIBO Group85%
6OctaFXOctaFX84%
7HotForexHotForex81%
8FXCMFXCM78%
9AlpariAlpari76%
10XMXM74%
  


Share: