Forex Today: Brexit and the US-China trade relationship near inflection points
|Here is what you need to know Monday, December 9th:
- An upbeat US employment report and a better-than-anticipated Michigan Consumer Confidence Survey boosted the USD on Friday, although its gains were moderated and uneven across the FX board. US data released earlier in the week triggered concerns about the country’s economic health, keeping the dollar’s gains at check.
- The US is scheduled to apply more tariffs on China next December 15, and the market fears that, if phase one of a trade deal is not signed this week, the trade war will escalate further, affecting the global economy.
- The EUR/USD pair held between the 1.10/1.11 range, still struggling for direction. The upside remains capped by dismal EU data signaling steepening economic slowdown entering Q4.
- The GBP/USD pair held on to gains, trading at multi-month highs amid hopes UK PM Johnson will win the upcoming election and be able to pass his Brexit deal through the Parliament. The latest polls released during the weekend showed that Conservatives’ lead remains stable at 10 points. Elections this Thursday will likely unwind large move in GBP crosses.
- Wall Street rallied on Friday, trimming all of its weekly losses. US Treasury yields bounced and posted modest weekly gains, underpinned by a robust US employment report.
- Gold collapsed on renewed dollar demand, but the Japanese yen remained strong and settled against its American rival near its weekly high, somehow reflecting market’s caution.
- Crude oil prices hit fresh multi-month highs after the OPEC+ decided to deepen cut by 500K b/d for a total adjustment of 1.7 million b/d. Also, the Baker Hughes report showed that US active drilling rigs declined to 663 from 668 last week.
- Cryptocurrencies held within familiar levels throughout the weekend, with the market’s action subdued. BTC/USD stable around $7,500.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.