Forex Today: The world gyrates around the US-China trade deal

Here is what you need to know  Monday, December 16th:

  • The American dollar stood victorious on Friday, as the US and China agreed on phase one of a trade deal. It ended the week down, however, against most major rivals.
  • China announced it suspended additional tariffs on the US meant to be implemented this Monday, while the US is expected to do the same, after agreeing to long purchases of US goods, mostly agricultural.
  • US Treasury Secretary Mnuchin said that details about the deal would soon be released, adding that the new trade relationship with China would be “very good” for global growth, adding that phase two of negotiations will begin immediately. PM Johnson would submit his deal to the Parliament before the year-end.
  • UK Conservatives’ victory sent the Pound skyrocketing against most major rivals, correcting lower ahead of the close but retaining substantial gains by the end of the week.  Next Thursday, Queen Elizabeth will do the so-called Queen’s Speech and will detail all the bills the government plans to enact over the coming year.
  • Wall Street was unable to hold on to gains, ending Friday barely up. US Treasury yields also retreated sharply from intraday highs, as speculative interest remains cautious ahead of more certainties about the trade war. The USD/JPY pair eased after faltering around December high.
  • Commodities closed the day and the week with gains, although spot held within familiar levels, while oil prices jumped to fresh multi-month highs on hopes of a trade deal between the US and China.
  • Cryptocurrencies under pressure throughout the weekend, BTC/USD poised to challenge 7,000.

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