HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

Positive sentiment lingers despite mixed newsflow


11 November 2024

Raffi Boyadjian   Written by Raffi Boyadjian

Trump prepares to take over

The markets continue to digest Trump's victory and last Thursday's Fed dovish rate cut, with most market participants now speculating on the course of action of the new administration as the president-elect is assembling his cabinet. In this context, he has already taken the initiative to talk to Israel’s Netanyahu, Russia’s Putin and Ukraine’s Zelensky.

Gold and oil remain on the back foot

Gold has been the main victim of the outcome of the US presidential election, losing around 3% from the early November highs. It is now trading above the $2,650 area, with the outlook remaining mostly bullish considering the two active conflicts and Trump’s unpredictable nature.

Similarly, oil prices remain on the back foot as concerns about China and global growth are elevated. Saturday’s Chinese inflation figures were again weak, with the market fearing deflation, particularly as the yearly change in the producer price index fell further into negative territory. Along with Friday’s announcements about local government debt, which were once again deemed as insufficient by the market, Chinese economic momentum remains negative. Meanwhile, China is preparing for a potential trade war with the US, a situation that could prove more challenging to tackle compared to Trump’s first term.

Equities and cryptos rally

On the flip side, equities and cryptocurrencies have benefited from Trump’s win. The S&P 500 index closed 4.7% higher last week, recording its best weekly performance in a year, but lagged the Russell 2000 index. This small-caps stock index jumped by 8.6% on a weekly basis, the strongest weekly rally since April 2020.

Similarly, the crypto world is on fire with bitcoin recording a new all-time high of around $81,800, and the market preparing for a continued rally towards the $90,000 level. The remaining major cryptocurrencies are also enjoying strong gains - for example ethereum is around 30% higher since election day - but most are still well below their all-time highs.

Partial holiday in the US

A quieter session is in store today, as there is a partial bank holiday in the US. The rest of the week, though, is packed with key data releases, including Wednesday’s US CPI report and Friday’s US retail sales report. Also, a plethora of Fed speakers and more headlines about Trump’s new administration are expected to flood the airwaves.

Meanwhile, the US dollar is maintaining its post-US election gains with the euro being under pressure. Euro/pound has momentarily traded below 0.83000, the lowest level since April 2020, when the Covid pandemic was unfolding. The market is pessimistic about the euro area’s ability to navigate through four years of Trump’s administration, particularly as Germany remains the weakest link.

Chancellor Scholz’s plan for a March 2025 election has backfired with the opposition parties pushing for a confidence vote this week and snap elections to be held in mid-January. Amidst this environment, the market is pricing in a 15% probability for a 50bps ECB rate cut in December, with this likelihood most likely going up if next week’s preliminary PMI surveys disappoint.

Japan’s Ishiba approved as PM, outlook remains clouded

The summary of opinions - the first version of the October BoJ meeting’s minutes - did not produce any surprises as most members were on board with the continuation of the ongoing tightening process. Interestingly, BoJ members expressed concerns about the yen’s depreciation. Meanwhile, LDP leader Ishiba has been approved as the prime minister of a minority government, since the smaller DPP party denied becoming the third coalition partner.

By XM.com

#source


RELATED

Dollar suffers as risk appetite takes hold

An Israel-Iran ceasefire has been agreed after 12 days of hostilities; Risk appetite gets a boost, but dollar weakness resumes; Oil surrenders its recent gains; gold slips as well; Focus today on Powell’s testimony as Fed doves push for a rate cut.

24 Jun 2025

Dollar set for weekly gains amid Israel-Iran war

Oil rebounds as supply concerns remain elevated - SNB cuts by 25bps, BoE delivers dovish hold - Wall Street resumes trading after Juneteenth.

20 Jun 2025

Dollar off highs despite rising Middle East geopolitical tensions

Israel-Iran conflict continues; US considers joining in; Dollar slips as risk appetite slightly improves; Oil maintains its recent gains, but gold fails to benefit; Pound pressure lingers as BoE meets on Thursday.

18 Jun 2025

Israel-Iran conflict remains in focus ahead of Fed decision

The US dollar slipped against all but one of its major counterparts on Monday, with the Japanese yen posting the largest loss.

17 Jun 2025

Dollar softens amidst cautious risk-on reaction

Israel-Iran confrontation intensifies; Risk appetite improves after an abysmal session on Friday; Dollar is on the back foot again; both gold and oil surrender gains; Four central bank meetings this week, starting with BoJ on Tuesday.

16 Jun 2025

Dollar slides amidst tariff rhetoric and soft US data

Trump dampens risk appetite, cites unilateral tariff plan; Dollar and equities suffer as investors also question US-China progress; British pound under pressure after another set of soft UK data.

12 Jun 2025

Dollar fails to recover as investors zoom in on trade talks

US-China talks resume; chances of an agreement increase; Mixed US stocks performance, but S&P 500 just shy of all-time high; Another set of soft UK data weighs on the British Pound; Gold trades sideways, as silver tries to keep its bullish momentum alive.

10 Jun 2025

Dollar seeks to rebound as investors zero in on US data

Trump-Musk public spat overshadows developments elsewhere. Trump-Xi call restarts US-China negotiations but outlook clouded. Key US data at 12:30 GMT; all eyes on nonfarm payrolls. Gold trades sideways, as silver jumps to a new high.

6 Jun 2025

Risk appetite takes a hit as Trump’s tariffs return to the spotlight

Dollar under pressure as Trump hardens trade stance; US administration demands trade offers from key partners; Weak start to data releases; focus today on Fedspeak; Both gold and oil surrender a small part of Monday’s gains.

3 Jun 2025

Dollar slides amid simmering trade frictions

Trump accuses China of violating deal. Threatens to increase tariff on steel and aluminum. Dollar slides, stock futures point to a lower Wall Street open. Gold attracts safe-haven flows, oil gains on OPEC’s decision.

2 Jun 2025

Dollar benefits from court’s tariff decision but outlook remains clouded

A US federal court blocks Trump’s tariff decisions; Dollar and US stocks jump on court decision, but rally already fading; Risk of Trump dropping his recent congenial stance; Gold attempts to climb higher; oil trades above $63 again.

29 May 2025

Dollar benefits amidst a muted risk-on reaction

Market participants are back in action following the US and UK bank holidays, which resulted in extremely low trading volumes during Monday’s session.

27 May 2025

Dollar weakness accelerates as risk appetite fades

Both the dollar and US stocks lose ground; Trump’s tax cut bill in the spotlight; Pound fails to react to stronger CPI report; Gold, oil and bitcoin rally on Israel-Iran headlines.

21 May 2025

Dollar struggles to maintain its recent gains

Both the dollar and US stocks seek direction as euphoria fades; Implied volatilities ease across the board. Trump calls for a Fed rate cut but bond markets disagree. Gold range trades, as oil stumbles at $64.

14 May 2025

Dollar gains after Fed decision

The US dollar outperformed all its major peers on Wednesday after the Fed decided to keep interest rates unchanged and sounded less dovish than expected.

8 May 2025

US and China agree to hold talks, Fed decision on tap

Dollar rebounds as US and China agree to hold trade talks. Fed enters the spotlight; focus to fall on tariff commentary. Euro gains after Merz elected as German Chancellor.

7 May 2025

US dollar fails to benefit from improved risk appetite

Stock performance this week will depend, among other factors, on the usual tariff rhetoric from US President Trump and the Fed meeting.

5 May 2025

US dollar's fate tied to incoming US data

Risk appetite continues to improve, with US equity indices recording their sixth consecutive green session yesterday.

30 Apr 2025

Dollar's struggles continue as tariffs remain in focus

Risk appetite improves, but outlook remains clouded; Tariffs in the spotlight as Trump awaits China’s capitulation; A quiet start to the week ahead of a very busy data calendar; Loonie might not enjoy a Liberal majority win in Canadian election.

28 Apr 2025

Dollar on the back foot as Trump alters his rhetoric

Trump sends mixed signals about tariffs again; Improved risk appetite weakens, stocks surrender gains; US data and Treasury note auction in the spotlight; Both gold and oil struggle to find their footing.

24 Apr 2025


Editors' Picks

How to Choose the Best Forex Advisor 2025

Key Factors to Consider When Choosing a Forex Advisor. Risk Management. Fees and Costs. Compatibility with Your Trading Style.

Automating Success: The Benefits and Risks of Using Forex Expert Advisors

This article explores the benefits and risks associated with using Forex Expert Advisors, providing insights into how traders can maximize their potential while mitigating potential downsides.

Best Forex Brokers 2025

By prioritizing factors such as overall rating, regulatory compliance, trading conditions and platform reliability traders can make an informed decision that aligns with their trading needs and aspirations, setting the stage for a potentially prosperous trading journey.

The Top Forex Expert Advisors 2024: Performance, Strategy, and Reliability Review

An annual roundup reviewing the most successful Forex Expert Advisors (EAs) based on their performance, strategies employed, reliability, and user feedback. This piece would provide insights into which EAs have been market leaders and why.

The Evolution of Forex Expert Advisors: Navigating the Path of Technological Revolution

The concept of automated trading has been around for decades, but the accessibility and sophistication of Forex EAs have seen significant advancements in the past few years. Initially, automated trading systems were rudimentary, focusing on simple indicators like moving averages.

Best Forex EAs – Forex Expert Advisors Rating

Expert Advisors (EAs) Rating features high-quality Free and paid Forex EA most popular on the market today.

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 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.