Slight Trade Optimism Pushes Markets Higher - All Eyes on the NFP [Video]

Asian bourses gained on Friday morning after U.S. President Donald Trump commented that trade talks with China were “moving right along”. EU markets also opened higher after dipping on Thursday on mixed news over a US/China deal. Overnight, however, U.S. President Donald Trump remained upbeat on trade and said talks are “moving right along” and that “we’ll have to see” about the increase in tariffs that are scheduled to take place on Dec. 15. We now see a slight return of risk to the table, while investors will now be focusing on the most important data release of the week, the U.S. Nonfarm Payroll report for more direction on the USD and risk asset. Watch my free live webinar on the Nonfarm Payrolls at  12:30 GMT. Register on BDSwiss’ webinar page.

 

One Week Until U.K. Heads to the Polls

In the U.K. another TV debate will be held in the UK less than a week before the election is taking place. With the pressure increasing as an ailing labour market where we currently see the worst growth in a decade and easing wage pressure. Voting takes place on Dec. 12 from 07:00 GMT until 22:00 GMT and we would expect immense volatility for the GBP.

We see pressure increasing also in France, where the labour unions have extended their strike until Monday. The anti-government demonstrators in range of 800k - 1.5M have left their jobs on Thursday demonstrating on the streets against Macron’s new pension reforms.

 

Impeachment Draws Nearer for Trump

In the U.S. House, Speaker Nancy Pelosi moved the House much closer to impeachment Thursday when she officially directed the Judiciary Committee to draw up articles of impeachment against President Donald Trump. A possible trial might begin as early as January 2020. Trump will face accusations of bribery, abuse of power and obstruction of justice. 

 

Oil Prices Dip  

Oil slipped in early Asian trade on Friday, with U.S. crude moving further away from a two-month high after OPEC agreed to increase output curbs in early 2020 but failed to promise further steps after March. Elsewhere, Aramco raised $25.6 billion during its IPO and is on track to be the most valuable publicly-traded company. This comes well below the $2 trillion sought by Saudi’s crown prince but putting it in the running to become the world’s biggest IPO.

 

Forex Preview: EUR Steady, Dollar Subdued

The greenback was headed for its worst week since mid-October, amid broader uncertainty over the U.S.-China trade relations and the latest dovish turn by the Federal Reserve. The euro was steady against a subdued dollar on Friday. Elsewhere, the kiwi enjoyed a hefty recovery after plummeting on weak data earlier this week. The AUD benefited from some renewed risk appetite, as well as due to positive domestic factors. Meanwhile, the GBP remained sensitive to the latest Brexit developments.

Opinion polls suggest the Conservative Party of Prime Minister Boris Johnson is on course for a majority on Dec. 12 to push through the Brexit deal he struck with the EU after the bloc granted a third delay to a divorce that was originally supposed to have taken place at the end of March.