fbpx

European open – US-China deal, Brexit, gold, oil

European open - US-China deal, Brexit, gold, oil - MarketPulseMarketPulse

image

Home/Commodities/Currency/FX/GBP/Indices/Market Pulse/USD

Share 0

Leaders in deal-making mood

It promises to be another fascinating week in the markets following some promising developments on trade and Brexit last week, the details of which may become more clear in the coming days.

Source – Thomson Reuters Eikon

Last week was clearly one of the more encouraging that we’ve experienced this year, with the US and China agreeing to the terms of “phase one” of a deal that will avert tariff increases this month and Boris Johnson and Leo Varadkar finding a “pathway to a possible deal” on Brexit, striking a more optimistic tone in the Northwest of England.

The only problem with both of these is that they are deliberately light on detail, which isn’t necessarily a bad sign but stops anyone getting too excited as it’s difficult to judge whether they’ll prove to be the start of something much greater or more broken promises and empty words.

The EU are pushing Boris for further concessions ahead of the EU Council meeting later this week, at which a deal is hoped to be agreed. A crucial few days lie ahead. The pound ended the week on a strong note, rising more than 3.5% against the dollar as optimism about a possible deal spread. Sterling is paring gains in early trade ahead of what is likely to be an extremely volatile week.

Sign up to our Brexit Special webinar on 15 October below

Gold slips on Brexit and trade war talks

Gold has rebounded off Friday’s lows but is once again looking vulnerable to the downside. Last week’s trade war and Brexit gains were bad news for safe haven gold and saw it temporarily break below $1,480 again having previously been taking a run at $1,520.

The result of this is that it has now failed to break its previous peak once again which further reaffirms the negative outlook for the yellow metal. Of course, with central banks once again embracing the easing cycle, any downside may be temporary for gold which has previously thrived in these conditions.

Gold Daily Chart

OANDA fxTrade Advanced Charting Platform

Oil buoyed by “phase one”

Oil prices were naturally buoyed by “phase one” of the trade deal which represented the first major de-escalation in the trade war and laid the groundwork for a more comprehensive agreement in the months ahead. This remains the greatest threat to the global economy and oil prices will remain vulnerable to developments.

Brent Daily Chart

Economic Calendar

For a look at all of today’s economic events, check out our economic calendar.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.

Craig Erlam

Latest posts by Craig Erlam (see all)

Original author: Craig Erlam
Bautista, De La Cruz and Partners
Forex Forecast and Cryptocurrencies Forecast for O...
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Friday, 15 November 2019
 
     
 

Latest Spot Rate

 
Wait a minute, while we are rendering the calendar
How It Works | About | Contact | Privacy Policy | Forex Marketing
© 2009 - 2019 Forex Forum. All Rights Reserved. Risk Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.