Newfound Trade Deal Optimism Fuels the Markets

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1. Newfound Trade Deal Optimism Fuels the Markets

U.S. President Donald Trump’s comments that Washington was close to a phase 1 trade deal with China boosted demand for riskier assets and caused safe havens to plummet this morning. On Tuesday, top negotiators from the two countries agreed to keep working on remaining issues. This persisting trade deal optimism is boosting stock markets to new highs, while also keeping the dollar supported on Wednesday.

 

2. Gold & Oil Tumble

Unsurprisingly, safe-havens are under pressure today as risk appetite continues to reign the markets. XAU/USD was last seen trading well below the key $1500 mark at $1458.9 as of 8:45 GMT. Meanwhile, oil eased on Wednesday following an industry report showing a surprise build in U.S. crude stockpiles, but hopes of a phase one between the U.S. and China kept oil prices somewhat supported.

 

3. Forex Preview: Dollar Reigns

The DXY rose on Tuesday amid broader market optimism over a much-anticipated phase 1 deal between the U.S. and China. The dollar edged higher against its rivals, adding 0.1% against the yen and the pound. A rate cut forecasts also kept the Aussie subdued and investors will now be keeping a close eye on next week’s RBA Interest Rate Decision. 

 

4. Cryptos are Falling, BTC at 7.1K

Cryptos are on a major downtrend since China took steps to stop virtual currency trading. The People’s Bank of China said this week that more than 170 Chinese crypto-trading platforms have shut down. The crypto sphere has come under immense pressure with the BTC tumbling by over thirty percent in the past

 

You can find and trade CFDs on all of the above-mentioned assets on BDSwiss Forex/CFD platforms.

Sources:
CNBC Nov 27, 2019 2:48 AM ET
Investing Nov 27, 2019 7:33 AM ET
Bloomberg Nov 27, 2019 6:45 AM ET
Reuters Nov 27, 2019 05:58 AM ET

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