U.S. President Donald Trump stated over the weekend that he is not ready to make a deal with China yet and today everyone is looking to see whether the US will grant Huawei another 90-day extension. Trump also stated that Apple's Cook made a compelling case that China tariffs will hit Apple and help Samsung higher, which is why he is thinking about how to handle this. Should we even be expecting tariffs on South Korea in the near future?

 

Risk Appetite Recovers

Stocks in Europe and Asia edged higher today as U.S. Treasury yields bounced after plunging last week. Global bourses look set to return to a slightly bullish momentum. Overall we see a slight risk-on mood on Monday, yet it will be very moderate and could turn any moment if we see progress on any geopolitical front.

 

Forex Preview: Safe-havens under pressure

Meanwhile, safe-haven currencies such as the yen and Swiss franc were under pressure as risk appetite returned and on expectations that policymakers would unleash new stimulus to accommodate a slowing global economy. The dollar index, which measures the greenback against six major currencies, was steady at 98.15 as of 7:55 GMT this morning, close to a two-week high reached on Friday. The EUR/USD continued to suffer from weak economic data last week and is currently awaiting today's CPIs at 9:00 GMT, the euro may also get some support from Germany's statement that they are ready to invest 50 Billion if a crisis hit.  

 

Oil Prices Edge Higher

Elsewhere, oil prices rose more than 1.5% following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for any signs that Sino-U.S. trade tensions could ease. Earnings were capped by a robust dollar and an OPEC report last Friday which rather showed a decreasing global oil demand and bearish fundamentals for the black gold.

US Oil

 

Gold Lower

Gold prices dipped this morning due to a stronger U.S. dollar and a recovery in equities. Given the simmering geopolitical tensions amid US and China, any new provocative moves from either side could push safe-havens higher, so the current XAU/USD  levels could be an interesting re-entry for buyers who missed a dip before. Elsewhere, BTC held above the 10k over the weekend and pushed to break out of its recent range above 10.6k which could ignite more buying interest if the price remains above that on a daily close basis.

 

 

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