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Forex Today: Dollar depressed amid trade skepticism, Bitcoin battered, Johnson-Corbyn debate eyed
Here is what you need to know on Tuesday, November 19:
- Trade: Contradicting reports about US-Sino trade talks keeps investors nervous. While the administration has extended Huawei's license to do business with American companies, reporters in Beijing are suggesting that officials are skeptical about reaching a broad trade deal soon. The US dollar remains on the back foot while Gold is consolidating its gains.
- UK Elections: Prime Minister Boris Johnson and Labour leader Jeremy Corbyn will confront each other in a televised debate later today, as opinion polls continue showing a double-digit lead for the Conservatives. Both men disappointed businesses on Monday with their speeches to the Confederation of British Industry. GBP/USD is holding its ground closer to 1.30.
- Brexit: Markets are also worried about what happens when the transition period expires at the end of 2020. The EU's Sabine Weyand reportedly sees only a "bare-bones" trade deal or a hard exit on WTO terms.
- Fed: Eric Rosengren, President of the Boston branch of the Federal Reserve, has expressed concern about cutting interest rates too much, thus exhausting valuable tools that would be missing in a recession. Rosengren's boss Jerome Powell, Chairman of the Federal Reserve, was summoned to the White House early on Monday. While President Donald Trump said the meeting was "cordial," he also protested against the Fed's policies. Trump would like to see lower rates. John Williams of the New York Fed will speak later today.
- AUD/USD is on the back foot after the meeting minutes from the Reserve Bank of Australia have shown some concern about the global slowdown and readiness to cut interest rates once again.
- Cryptocurrencies have been extending their falls, with Bitcoin trading around $8,100.
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Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
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