Market wrap: US equities trade heavily, GBP/USD worst performer - Westpac

Ross J Burland FXStreet

In a market wrap, analysts at Westpac explained that after Asian equity markets mostly closed higher, sentiment soured in Europe. US bonds were closed for Veterans Day but equities were open and traded heavily, especially tech stocks.

Key Quotes:

"The main focus was concern over weaker demand for iPhones, with Apple sliding, though President Trump tweeted that, “The prospect of Presidential Harassment by the Dems is causing the Stock Market big headaches!”

EUR/USD was one of the worst performers, falling from 1.1325 to 1.1239 – a low since June 2017 – amid concerns the Italian budget impasse could escalate. Tensions remain into today’s deadline on responses to EU’s rejection of the initial budget proposals (not only for Italy) while the Italian government continues to hold staunchly to their proposals.

AUD/USD followed the broad USD moves, slipping from 0.7235 in the Sydney afternoon to 0.7190. NZD/USD was volatile but overall only slightly lower, around 0.6725. AUD/NZDthus fell further, from 1.0720 to 1.0677 – the lowest since June.

GBP/USD was the worst performer, falling from 1.2950 to 1.2828. There were further negative official and media comments over lack of potential for a breakthrough this week, amid increased political tension within May’s minority government. On a strong day for the US dollar, the safe-haven yen held its ground, net flat over the day at 113.80, though spent some time above 114."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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