As investors turn risk-on equities this week, both Gold and Silver experienced a significant sell off, based on news that the US may remove tariffs on China. This led to US Stocks recording new all-time highs, with the Dow Jones up over 2.3% this week and a safe-haven trade wind down, as Gold and Silver slumped 2.3% and 5.2%, respectively.
Trade Ideas ahead of NFP The markets have been on a rollercoaster ride this week, digesting Central Bank decisions, monetary policy outlooks and trade war uncertainty. This all played a part for volatility this week, and this does not even include the decison to...
The trend of GDPUSD The US dollar and the pound were steady on Wednesday, and EU leaders are considering a request for a postponement of the Brexit, which is expected to extend the October 31 deadline by three months. European Council President Tusk said on Twitter...
USDTRY dropped after Trump Speech On 23 October, US President Trump announced that the United States will lift sanctions against Turkey because of a "permanent" ceasefire agreement between Turkey and Kurdish armed groups. After the news came, the Turkish lira, ETF and...
The United States blacklist has gained eight new Chinese technology companies, added to the list on Monday under the Trump administration. The White House accused these eight tech companies of being implicated in human rights violations against Muslim minorities in China’s far-western province of Xinjiang. Two of the companies included on the list are Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. both companies specialize in video surveillance, that controls nearly a third of the global market for video surveillance, with their cameras all over the world. With China’s Vice Premier Liu He scheduled to arrive in Washington for high-stakes trade talks being viewed by financial markets around the world, the timing for these blacklisted companies seem less than ideal.
Following reports pointed at an imminent breakdown in Brexit talks on Tuesday, the British pound fell over 0.6 % to the lowest level in months, $1.22. Prime Minister Boris Johnson told German Chancellor Angela Markel that a Brexit deal is next to impossible if the European Union wants Northern Ireland to stay in the customs union. With news emerging that the British Government is preparing for the talks to collapse as progress over the last few weeks have been minimal. At writing, the GBP/USD is currently trading at the 1.22231 mark, testing a key support area established way back in early September. We could see a rejection at this support followed with a move to the upside, as a consolidation zone appears to be forming between the 1.22 support and 1.23 resistance areas.
First of all, according to the newest US ADP report, private business in the United States hires 135 thousand workers in September, which is lower than expected. Also, ISM is a signal for the manufacturing industry shrinking. People worried about the US overall economy. Moreover, the US Dollar Index drops over 99 marks. Secondly, The EU and the United States have threatened to impose tariffs on imported products. The United States will impose a 10% retaliatory tariff on EU aircraft and a 25% retaliatory tariff on agriculture and industrial products. The pessimism environment of global trade, especially between EU and US, benefits for kiwi dollar. Finally, Chinese holiday results in a lack of key data of business and trading activities. Therefore, it makes Asian business under pressure. However, the USD is weak that makes NZD going forwards.
On this Wednesday (October 2), the latest US ADP reported that 135 thousand workers were employed in private business in the United States in September. It is less than market expectations, which makes the market more worried about the strength of the US labour market and the overall economy. There are more and more signs that the labour market is slowing. As these figures are announced, people are increasingly worried about the strength of the US economy.
During the September meeting, the Reserve Bank of Australia lowered its’ official cash (OCR) rate for the third time this year, to a new record low of 0.75 percent, cutting rates by 25 bps. The Reserve Bank has stated the rate cut has been to support employment and income growth for the Australian economy. Aiming to provide greater confidence that inflation will be consistent with the medium-term target.
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