NY Open: Wall Street higher despite frosty geopolitics

Wall Street traders would rather see the money than fret about geopolitical developments. US equity indices are in positive territory, taking the lead from European and Asia markets. Prices are supported by robust earnings reports and higher energy prices. The S&P 500 at 2,860.20 is within spitting distance of this year's peak of 2,872.87.

FX trading has been rather dull since New York opened. EURUSD, AUDUSD, USDCHF and USDJPY are basically unchanged while the loonie, kiwi and sterling vie for the title of the weakest. However, the ranges are very small.

President Trump’s morning tweet was largely ignored. He wrote: “The Iran sanctions have officially been cast. These are the most biting sanctions ever imposed, and in November they ratchet up to yet another level. Anyone doing business with Iran will NOT be doing business with the United States. I am asking for WORLD PEACE, nothing less!”

Markets don’t seem to care about the risk of US sanctions on European corporations.

GBPUSD continues to suffer from the negative Brexit reports on the weekend and is consolidating losses in a 1.2920-1.2972 range. The short-term technicals a bearish following the break below 1.2980. A break below 1.2910 would target 1.2750. There is still a lot of time for a ”good news’” Brexit story and GBPUSD appears ripe for a correction. A decisive break above 1.3010 could be the catalyst.

The Canadian dollar ignored yesterday’s Canada/Saudi Arabia diplomatic spat triggered when Canada’s Foreign Minister tweet advice to the Saudi’s about how they should conduct themselves. The Saudis were not impressed. USDCAD support at 1.2960 survived a couple of hourly tests today. Weaker than expected Ivey PMI data supported a bounce from 1.2980 to the 1.3005-10 resistance area with additional resistance lurking at 1.3040.

USDJPY is weighed down by a report the Bank of Japan wanted to discuss tightening at the last meeting. Rising US/China trade tensions derailed the talks. USDJPY is in an uptrend above 110.80. A decisive break below that level would target 107.80.

Source: Saxo Bank

Saxo Capital Markets (Australia) Pty Ltd prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Combined Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)