Renewed focus on trade tensions weighed on market sentiment - TDS

Ross J Burland FXStreet

Analysts at TD Securities explained that a renewed focus on trade tensions weighed on market sentiment after the US detailed another $200bn of Chinese imports targeted for tariffs.

Key Quotes:

"The S&P 500 ended the session down 0.7%, mirroring the decline in the TSX."

"Treasuries saw little change while the Canadian curve flattened modestly following the BoC decision."

"The USD saw a broad rally against G10 FX with DXY (+0.6%) posting its largest rally in two weeks. Antipodeans led the pullback (AUD, NZD: -1.2%) amid the focus on US-China trade while CAD's (-0.7%) post-BoC rally was short-lived with oil prices in freefall (WTI: -5.0%, Brent: -6.2%)."

"The BoK, ECB minutes, and US CPI are the highlights of the data calendar for Thursday."

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.

EUR/USD challenges 1.1800, two-week lows

EUR/USD remains on the defensive, extending its leg lower to the vicinity of the 1.1800 region, or two-week lows, on Tuesday. The move lower comes as the US Dollar gathers further traction ahead of key US data releases, inclusing the FOMC Minutes, on Wednesday.

GBP/USD looks weaker near 1.3500

GBP/USD adds to Monday’s pessimism and puts the 1.3500 support to the test on Tuesday. Cable’s marked pullback comes in response to extra gains in the Greenback while disappointing UK jobs data also collaborate with the offered bias around the British Pound.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.