The last chance for China and US to find common ground – but will they?

By 19/11/2019News
Morning Stock News

Gold   1472,57
(+0,08%)

EURUSD   1,1077
(+0,06%)

DJIA   28028
(+0,08%)

OIL.WTI  56,90
(-0,11%)

DAX   13203,86
(+ 0,01%)

Dark clouds are gathering over the US-China trade agreement. The Chinese side is skeptical about the prospects, since Trump is unwilling to rescind part of the tariffs. Negotiations by phone haven’t yielded a result so far. If the relationship between the two states cools further and any negative news emerge, a serious market correction is likely.

GBP/USD day chart

Bitcoin is in the red again. Volatility is decreasing, and BTC is slowly moving towards $8000. Given that the movements are small, it will be difficult to break through that mark. It will take a strong impulse, coupled with large trading volumes, to set a new short-term trend.

EUR/USD

Friday’s statistical data have put pressure on the dollar. Already on Monday, the US currency was losing ground in the European markets. Euro grew to 1.1080 and will probably keep going up. A new round of ECB’s quantitative easing program, as well as reduced industrial production in the US, act as growth drivers for euro.

GOLD

Gold regained some of its positions on Monday, slowly moving towards the important price level of $1500 per ounce. Although some investors have closed their long positions, the demand for gold is still at a record high, so the chances for further growth are very high.

INDICES

No major macroeconomic data were released on Monday, so the markets were left to their own devices. In the absence of news, investors decided to drive the US market to a new all-time high, while the markets in Europe were undecided and ended the session slightly in the red. Now the markets are waiting for decisive results in the trade negotiations between the United States and the PRC.

What’s next?

02.30 Reserve Bank of Australia’ session on the monetary policy
15.30 US: data on construction permits for October


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