Forex Today: US-China trade deal closer, risk-on leads
|Here is what you need to know Friday, November 8th:
- Trade war: sentiment led the way for currencies, with the trade relationship between the US and China settling it. A trade deal was put at doubt Wednesday after Trump and Xi Jinping delayed their meeting to December. News Thursday, however, indicate that talks keep marching in the right direction, with both economies reporting they are willing to roll back tariffs in phases once a deal is done.
- BOE: The UK’s central bank surprised with a dovish stance. Policymakers decided to leave it’s monetary policy unchanged, although two members voted for a rate cut. Governor Carney, in his later speech, flagged the risks of a global economic downturn and warned that a no-deal Brexit would likely result in job losses and business closures. The Pound plummeted against most major rivals.
- The European Commission downgraded the Union’s growth forecasts for this year and the next, the EUR/USD pair fell to a three-week low.
- Equities soared with Wall Street hitting record highs. The dollar strengthened on demand for US high-yielding assets.
- Precious metals came under strong selling pressure on the back of the dollar’s strength and risk appetite. Spot gold traded around $1,460.00 a troy ounce.
- Crude oil prices gave up at the end of the day, trimming most of its intraday gains. WTI settled below $57.00 a barrel.
- Cryptocurrencies edged lower, spent the US session in consolidative mode.
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