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.



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Editors’ Picks

AUD/USD stays under pressure around 0.6830 while beginning the NFP day

AUD/USD declines to 0.6830 during the initial Friday morning in Asia. The quote stretches losses made on Thursday as the second-tier Aussie data becomes the latest disappointment.


USD/JPY steady at 200-DMA ahead of critical US NFP data

Steady below the 200-day moving average, Yen fell from 108.97 to 108.66 overnight as positive trade deal headlines flowed through the news wires and helped US stocks eke out further gains. Risk appetite was solid into the close on Wall Street overnight.


US Non-Farm Payrolls November Preview: Labor market continues to defy concerns

Non-farm payrolls are predicted to rise 180,000 in Nov following Oct’s 128,000 increase. The unemployment rate is expected to be unchanged at 3.6%. Hourly earnings will gain 0.3% in Nov after October’s 0.2% increase and annual earnings will be stable at 3.0%.

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Gold: Modestly changed to $1475 as markets turn cautious ahead of US NFP

Gold fails to extend the previous day’s recovery while trading near $1475/76 amid Friday’s Asian session. That said, the yellow metal registers failures to close beyond 50-day EMA for the third consecutive day.

Gold News

GBP/USD: 1.3180 holds the key to further upside

GBP/USD traders modestly changed around 1.3160 by the press time of early Asian session on Friday. That said, overbought conditions of the 14-day Relative Strength Index (RSI) and the recent stop in north-run make buyers doubtful.


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