Gold 1490$ (– 0.2%)
Euro 1.097 (-0.1%)
Dax 12083 (+ 0.3%)
The markets re-opened on a positive note after the weekend. US unemployment data published on Friday showed a lower number of new jobs relative to earlier forecast. This serves as a further sign to the investors that the Fed will lower the interest rate again. High-risk assets went up, while gold, Japanese yen, and Swiss franc all lost a bit.
DAX30 DAILY CHART
After falling down to its lowest point in many months, the EUR/USD has already rebounded by 100 points. Its growth is driven by the widespread opinion that the US and China might reach a compromise in their ongoing trade war. There’s still a week left till the introduction of the planned tariffs on goods worth $250 billion, so there’s still time to reach a solution.
As expected, the price of gold decreased, dragging other precious metals with it. However, bears shouldn’t celebrate too soon. The powerful upward trend, which began in Q2 2019, remains unchanged. In the context of any new or existing political tensions (such as the protests in Iraq), gold can easily set a new record.
The SP500 and DAX charts look very interesting. On Thursday, they rebounded from the very strong support level formed by the daily 200 MA and started moving north again. Chaotic supply has been consumed; there’s every reason to expect a traditional Q4 rally.
What’s going to happen today?
A lot of interesting events are scheduled for Tuesday. First and foremost, we’re waiting for the statements by Governor of the Bank of England Mark Carney and Chair of the Fed Jerome Powell, as well as for the start of the European Central Bank session. Any signs of a continuing easing of the monetary policy are bound to elicit a strong positive reaction from the stock markets.
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