Forex Today: Hope for two Trump trade deals, Boris on the back foot, Fed,ECB awaited
|Here is what you need to know on Tuesday, December 10:
Trade: Markets are cautiously optimistic as Soony Perdue, the US Agriculture Secretary, said that he "does not believe" that tariffs against China will be implemented on December 15. Negotiations between the world's largest economies continue ahead of the deadline. Gold and the yen are stable. President Donald Trump reaffirmed his stance that the US and China are making progress.
UK elections: The pound's rally has stalled as the focus of the election campaign returned to health. Prime Minister Boris Johnson refused to look at a picture of a child sleeping on a hospital floor. Opinion polls continue showing a solid Conservative lead of around ten points ahead of the vote on Thursday. Monthly Gross Domestic Product figures for October are due out today.
See
- UK Election Preview: GBP bulls to hold their horses.
- UK Elections Preview: Five scenarios for the vote and potentially wild GBP/USD reactions
EUR/USD has been moving up gradually amid beats on secondary data figures. The German ZEW Economic Sentiment is eyed today as investors look for signs of recovery in the continent's largest economy. Markets are waiting for the European Central Bank's rate decision on Thursday.
Fed: Tension is also mounting toward the Federal Reserve's decision on Wednesday, where Chair Jerome Powell and his colleagues are set to leave rates unchanged and provide hints toward 2020. See Fed Preview: Is the bar higher for hiking? Powell's may down the dollar, three things to watch.
The Canadian dollar and the Mexican peso have been benefiting from reports that Canada, the US, and Mexico are getting closer to modifying the USMCA trade deal that would enable the three North American countries to ratify the accord.
The Australian dollar has stabilized alongside business conditions, which have found a bottom.
Cryptocurrencies remain at familiar levels, with Bitcoin trading at the $7,300 handle.
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