Here is what you need to know on Wednesday, December 11:
UK Elections: YouGov's second broad MRP survey has shown a significant narrowing of the gap in favor of the Conservatives – to 28 against 68 two weeks ago – with the polling firm noting that a hung parliament has a real chance. GBP/USD has fallen off the highs, 24 hours before voting begins. Investors would prefer a solid Tory victory. Gross Domestic Product disappointed by remaining flat in October.
Trade war: President Donald Trump has yet to decide on the December 15 tariffs, according to the Wall Street Journal. On the other hand, the paper says that negotiators are laying the groundwork for a deal. Peter Navarro, a hawkish White House adviser, says he has no indication the levies will be postponed. The safe-haven yen and Gold have yet to react.
The Federal Reserve is set to leave interest rates unchanged in its last decision of the year and hint about policy in 2020 via its dot-plot and a press conference held by Chairman Jerome Powell. Most analysts expect only minor changes to the statement.
See
- Federal Reserve Preview: Watching for the Projection Materials
- Fed Preview: Is the bar higher for hiking? Powell's may down the dollar, three things to watch
US data: Unit Third-quarter Labor Costs have been significantly revised lower to 2.5% annualized. Ahead of the Fed, the Consumer Price Index is set to move the US dollar (see preview). Yearly Core CPI is set to remain unchanged at 2.3% in November.
EUR/USD has been edging higher amid upbeat German ZEW Economic Sentiment. Markets are awaiting the European Central Bank decision on Thursday., the first one by Christine Lagarde (see preview)
USMCA: US Democrats and Republicans have reached an agreement with Canada and Mexico on a revised version of the USMCA – the trade agreement that replaces the generation-old NAFTA. The deal was priced in and the images of the signing ceremony in Mexico have failed to boost the Canadian dollar and Mexican peso.
Emerging economies: The South African rand has come under pressure amid fears of a recession and rolling blackouts. Alberto Fernandez, Argentina's new president, said that his country wants to pay its debts, but cannot.
Cryptocurrencies have been on the back foot, with Bitcoin battling the $7,200 level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price holds strength ahead of US core PCE inflation
Gold price holds onto gains near $2,200 in Thursday’s European session. The precious metal exhibits firm footing ahead of the United States core PCE Price Index data for February, which will be published on Friday.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.