By Deepta Bolaky
Wall Street advanced to fresh record highs buoyed by positive trade headlines. Investors cheered the telephonic conversation between top trade negotiators to reach a consensus on solving the latest issues for Phase One of the trade deal.
The recent optimism that a partial deal will take place before the year ends has triggered a rally in global stocks.
In the FX market, major currencies were mixed against the US dollar. Despite a busy economic calendar, major pairs remain within familiar levels. The US housing data came out mixed which provided little support to the greenback. Trade news kept the US dollar afloat.
The British Pound stays driven by the political election campaign. The GBPUSD pair remains in the elevated levels but has consolidated in a tight range. Even though the Conservative party continues to lead over the Labour Party, polls show that the gap has narrowed.
As of writing, the pair is trading at the 1.28 level.
GBPUSD (Hourly Chart)
Source: GO MT4
While markets look ahead to the OPEC meeting, oil prices are finding support on trade-related headlines. There is a possibility that the de-facto leader of OPEC, Saudi Arabia may convince hesitant members to deepen output cuts.
In the meantime, traders will look for trade developments and weekly reports to drive the short-term price action of the oil. As of writing, WTI and Brent Crude are currently trading higher in the vicinity of $58 and $63 respectively.
Gold initially took a beating as risk sentiment has improved across board fueled by hopes that the US and China are making progress on the trade front. However, the XAUUSD made a recovery to $1,460 after dipping in the region of $1,450. In the short-term, we expect the bearish bias to prevail as the pair has been trading in a descending trend recently. A significant break above the $1,460 could provide a more bullish near-term view.
XAUUSD (Hourly Chart)
Source: GO MT4
RBNZ’s Governor Orr Speech ( New Zealand)
BoJ’s Sakurai Speech (Japan)
ZEW Survey – Expectations (Switzerland)
ECB’s Lane Speech (Eurozone)
Durable Goods, Core PCE, Personal Income & Spending, Jobless Claims, GDP, Pending Home Sales, and Fed’s Beige Book (US)
|Thursday, 28 November 2019
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