FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1730
BTC/USD
47 499.18
GBP/USD
1.3751
USD/JPY
109.9450
USD/CHF
0.9316
USD/CAD
1.2765
EUR/JPY
128.9676

Sentiment whipsaws on US-China trade mixup


23 June 2020

Over the past few hours, risk sentiment has swung between two extremes thanks to conflicting statements from the White House over the US-China trade deal.

A wave of risk aversion threatened to engulf financial markets during early trading on Tuesday after White House trade advisor Peter Navarro said that any trade deal with China was “over”. However, President Donald Trump came to the rescue by tweeting that the trade agreement with China is “fully intact”.

Asian shares were thrown on a rollercoaster ride following the trade confusion but the clarification offered by Trump may support European markets ahead of the latest Purchasing Manager Index (PMI) data for France and Germany.

Speaking of the Euro, expect the EURUSD and other crosses to turn volatile ahead of the pending PMIs. As discussed on Monday evening, the currency pair has staged a strong rebound thanks to a weaker Dollar. A disappointing set of data from Europe may weaken buying sentiment towards the Euro, essentially dragging the EURUSD back towards 1.1200. Alternatively, a solid break above 1.1280 could trigger an incline towards 1.1300 in the short term.

Since we are discussing the Euro, keep a close eye on the EURGBP which has broken out the 150 pip range on the daily charts. The daily close above 0.9000 may encourage an incline towards 0.9120 in the short to medium term. Technical indicators like the Moving Average Convergence Divergence and 100 SMA suggest that bulls remain in a position of power. Should 0.9000 prove to be unreliable support, prices may sink back towards 0.8800.

Commodity spotlight – Oil


Oil gained over 10% last week despite the rising coronavirus cases in China and the United States.

Prices seem to be rising higher on-demand optimism and commitment by OPEC+ to rebalance Oil markets, especially members who overproduced in April. Regardless of the current gains, the path of least resistance remains south. With the core fundamental themes weighing on market sentiment still present, the current rebound on Oil could be nothing more than a dead cat bounce. Looking at the technical picture, WTI Crude has broken above $40 and may challenge $42 in the short term.

#source

Related

Dollar jumps, gold slumps, stocks nervous
Dollar jumps, gold slumps, stocks nervous

Worries that the US consumer is rolling over were dealt a major blow yesterday after the nation’s retail sales for August overpowered some gloomy forecasts. The retail sales...

17 Sep 2021

Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021

Are investors sleeping on systematic risk in China?
Are investors sleeping on systematic risk in China?

It’s time to talk about China. The situation is getting dicier as the nation’s second-largest property developer - Evergrande - is on the verge of default. Trading in the company...

16 Sep 2021

Sentiment sours as the S&P 500 tests key support
Sentiment sours as the S&P 500 tests key support

We head to quadruple witching in the US on Friday and notably options expiration (OPEX), and the weakness we see time and again in the week before seems...

15 Sep 2021

Dollar unscathed by soft inflation, equities resume slide
Dollar unscathed by soft inflation, equities resume slide

Dollar takes little damage despite signs US inflation has peaked - Wall Street resumes selloff - all eyes on China contagion risks - Canadian data coming up ahead of elections, gold wakes up...

15 Sep 2021

US inflation under the microscope
US inflation under the microscope

With the Fed having almost locked in a November taper announcement, the question now is whether Chairman Powell will use next week’s policy meeting to give the markets...

14 Sep 2021


Forex Forecasts

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.