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 recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

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.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.