Posted Tuesday, December 3, 2019 by
• 2 min read
US Market Wrap
US traders were back at their desks yesterday after a shortened trading week and it appears they walked into another firestorm. Again it was more worries around trade that dented market sentiment.
US President Trump came out and said he would impose tariffs, effective immediately, on all steel and aluminium from Brazil and Argentina.
Clearly, this wasn’t the news markets wanted to head and we saw selling in the Greenback and SPX. The falls also came on the back of a strong month of gains, that saw investors getting a little comfortable with both the US-China trade talks and Brexit.
With all the focus on the RBA in early Asian trade, the European session looks like it will be relatively quiet in terms of data. The main release will impact the GBP/USD with construction PMI. While there are some second-tier PPI and CPI releases.
Much of the attention today will be on sentiment and the fallout from Trump’s attack on Brazil and Argentina. Clearly, this might be a good time to take some profits after a solid month for longer-term equity investors with the holiday period ahead.
The week will continue to build into Friday’s jobs report, while the BOC is the next big central bank to keep an eye on.
Forex Signal Update
The FX Leaders Team finished with 1 win from only the 2 signals in a quiet start to the week.
EUR/CHF – Active Signal
The EUR/CHF has really turned the corner for us and we are now back in the green. There was always going to be some resistance to help us out here and that worked really well for us.
Gold – Pending Signal
GOLD has been quite soft of recent times as there has certainly been more of a risk-on feel. We have a key support level below and some resistance above so we are looking for a move in either direction to get short.
BTC remains under pressure at the moment with the weakness as yet, showing no signs of abating.
As it stands, price is still under the $7,600 level with more resistance at $7,800 and $8,000.
The headlines of recent times have been bearish, with the Chinese crackdown on digital currencies clearly weighing on sentiment.
The next obvious short will be a break of $7,000. However, selling any pops into those resistance levels would also be a solid plan.