The main news of the day came again from Twitter of US President Donald Trump. “The U.S. is very close to a major deal with China,” the American leader said. However, we do not know if it is true. The U.S. dollar just shot into the sky on this news, having started to rise sharply against all currencies.
EUR/USD day chart
On the positive side, stock markets around the world are growing, as are commodity prices. The main thing is that the next portion of the positive does not result in another and growing negative, if after the weekend we hear that there are new problems in the negotiations again.
Very interesting technical picture in a pair of euros/dollar. Pay attention to the daily chart above. For the first time since June, the price is close to the 200-day simple moving average line and bounced back like a pinpong ball.
And this is against the background of the statement of the new ECB Chairman Christina Lagarde that the slowdown of the Eurozone economy has stopped. In any case, from the low of October, the pair has already grown by 300 points, and the correction is absolutely normal. Today it started with fundamental and technical factors.
Gold traditionally reacted with a fall in trade tension, although in the first half of the day it grew steadily against the U.S. dollar and other currencies. A number of stops were removed, but the break-up turned out to be false, the gold metal returned to the corridor, which had formed since the beginning of November 2019.
The American stock market has shown new historical highs. Investors have already forgotten about the sharp fall of the first 2 trading days in December. The shell does not fall into the same funnel twice, so almost nobody foresees a repetition of last December, when stock indices closed the month of cutting by the fall. On the contrary, there is still enough time left until the end of the year and the Christmas rally is in full swing.
What awaits us today?
EU Leaders Summit
09.00 Address by ECB Vice-President De Gindos
14.30 Retail sales in the USA in November
Important Notes on This Publication:
The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.