All key news of Tuesday and Wednesday have to do with the US. Trump’s Tuesday speech didn’t manage to inspire investors. The trade issues between the United States and China remain unresolved. Impeachment hearings are to commence in Washington. Investors are waiting for the results, but what will come out of it is anyone’s guess.
EUR/USD day chart
The trend for lower volatility in the crypto market continues. BTC price dipped below $8750 twice. Market players don’t show much reaction to impulse movements and are unwilling to join in. Chinese authorities are making more frequent mentions of crypto and have even announced a plan to launch a digital yuan. Such positive news can render traders more optimistic and give the market a much-needed shake-up.
Euro has lost its market positions and is down for the eighth day in a row, while USD remains stronger than ever. The US consumer price index for October equalled 0.4%. There’s little indication that the Fed will lower the interest rate once again. Finally, the trade talks between China and the US are close to the finish line. Meanwhile, uncertainty still rules in Europe, there are no positive signs for the economy, and Brexit is almost upon us. The trading pair is likely to fall even lower.
Gold was in a much better position on Wednesday and managed to retain its upward movement. Since there’s no news about the US-China trade deals, investors are switching to more secure assets as their skepticism grows. In any case, investors know that their gold bars aren’t going anywhere. If any fresh signs of an upcoming global recession emerge, the demand for gold will grow dramatically.
Almost all global indices were in the red on Wednesday. Trump didn’t say anything new about the trade deal, and there were no major economic news. This absence of fresh information can cause the indices to fall lower; indeed, the market has experienced a significant rally recent, and now all the players need to take profits and have a breather.
01.50 Japan: GDP data for Q3
04.00 China: manufacturing data from the start of 2019
15.30 US: industrial price index for October
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