Yesterday’s Tariff Delay Rally is Already Running Out of Steam [Video]

Alexander Douedari Independent Analyst

A fresh wave of risk appetite has swept the markets yesterday creating a worldwide market rally after news that Trump postponing the additional 10% tariffs on key goods until Christmas and that China and the U.S. are to resume trade talks in Washington in September as planned. Signs that point to major central banks being more accommodative and cutting rates further also helped push global risk markets higher even amid rising geopolitical tensions in Italy, Hong Kong and Argentina.

Meanwhile, economic data out of China came in weaker overnight adding to the mounting data that the global economy is declining and that is also why the latest risk-on impulse is not likely to last, as none of the core geopolitical issues was actually solved or has changed in any way. Markets will focus on the latest EU GDP data at 9:00 GMT today after a devastating ZEW yesterday showed how much the economy in Europe and especially Germany is nosediving. Today, major EU indices opened lower, erasing some of yesterday’s gains.

Forex Preview: Yen Gains, EUR/USD Looks for Direction

The USD gained a little after the news of tariff delay broke yesterday but hasn't moved much really. The EUR wallowed below the 1.12 again but remained above the key 1.1150 which it needs to break through or above the 1.12 on a daily close for a clear directional statement. The safe haven JPY edged higher against its US counterpart this morning after some weak data out of China.

Oil Prices Dip, Gold Below $1,500

Oil prices dipped this morning on disappointing economic data from China and a rise in U.S. crude inventories, erasing some of yesterday's gains after a good bull run on trade-talk-hopes. Watch for the Crude oil stocks this afternoon for more data. Elsewhere, gold had a crazy ride yesterday in both directions with big volatility and is presently trading around the key $1,500 level. However, given the geopolitical issues that still persist, I continue to see dips in Gold as interesting “buy” opportunities.

Bitcoin plummets

The price of Bitcoin has fallen below $11,000, and is currently hovering $10,600 marking a near 7% drop for the day. After several days of being unable to break the 12k level to the upside, BTC/USD is now wallowing below the 11k mark and may test the psychological 10k mark on its current sell-off wave.

Author

Alexander Douedari

Independent Analyst

Alexander Douedari is an Award Winning Hedge Fund Manager and Selfmade 7-Figure Trader. Now Mentor for Students all around the world.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.