Access both platforms from your single Saxo account.
NY Open: Trump circus comes to Argentina
Michael O’Neill
FX Trader, Loonieviews.net
Summary: Financial markets do not appear to be holding out much hope for a resolution of Sino-US trade hostilities at the G20 summit.
President Trump is in the centre ring at the G20 circus in Buenos Aires, Argentina. Markets are hoping for a thaw in trade hostilities between China and the US. However, this morning’s price action suggests traders don’t have a lot of confidence in that view. Trump may (or may not) meet with Russia President Putin. Ukraine issues have returned to the front pages as have Trump’s business dealings with Moscow.
The US dollar has posted small gains (as of 13:45 GMT) against the major G10 currencies since the open. EURUSD, dropped the most, supported by a jump in Chicago PMI. (Actual 66.4 versus a forecasted 59.4).
USDCAD had a moment of volatility as well. Prices whipsawed in a 1.3274-1.3325 range when Canadian GDP data were released. September GDP was -0.1% (forecast at 0.1%) while Q3 GDP was as expected, at 2.0%. The currency pair quickly returned to pre-data levels.
November was a volatile month for FX, and the US dollar is finishing it on a mixed note. The New Zealand dollar was the best performing currency gaining 5.45%, supported by a series of strong economic reports. The Canadian dollar was the weakest of the G10 majors, losing 1.30%, due to sharply weaker oil prices, which lost 22% in the month. GBPUSD was extremely whippy in a 1.2690-1.3175 range for the month but is finishing virtually unchanged.
Wall Street opened with minor losses but barring a major meltdown will close the week on an up note. Traders are cautious ahead of the trade talks at the G20 meeting on the weekend
Oil prices have extended European losses. WTI broke the $50.00/barrel level again, touched $9.68/b and is now sitting at $49.84/b. Traders are concerned that even if Opec manages to agree to production cuts, they won’t be enough to offset rising global supplies.
The week ahead is the beginning of the end – for 2018. Seasonal holidays make it a very short month, but a lot of significant events and data are crammed into the available days. The US employment report is expected to be robust with forecasters predicting a gain of 220,000 jobs. Eurozone PMI data is on tap while EU/Italy budget talk headlines and Brexit news are the wild cards. The Reserve Bank of Australia meeting is Tuesday, and it's widely expected to leave rates unchanged. The Bank of Canada meeting is Wednesday and like the RBA, it is expected to leave rates unchanged. The quarterly Monetary Policy Report is also released.
The US dollar has posted small gains (as of 13:45 GMT) against the major G10 currencies since the open. EURUSD, dropped the most, supported by a jump in Chicago PMI. (Actual 66.4 versus a forecasted 59.4).
USDCAD had a moment of volatility as well. Prices whipsawed in a 1.3274-1.3325 range when Canadian GDP data were released. September GDP was -0.1% (forecast at 0.1%) while Q3 GDP was as expected, at 2.0%. The currency pair quickly returned to pre-data levels.
November was a volatile month for FX, and the US dollar is finishing it on a mixed note. The New Zealand dollar was the best performing currency gaining 5.45%, supported by a series of strong economic reports. The Canadian dollar was the weakest of the G10 majors, losing 1.30%, due to sharply weaker oil prices, which lost 22% in the month. GBPUSD was extremely whippy in a 1.2690-1.3175 range for the month but is finishing virtually unchanged.
Wall Street opened with minor losses but barring a major meltdown will close the week on an up note. Traders are cautious ahead of the trade talks at the G20 meeting on the weekend
Oil prices have extended European losses. WTI broke the $50.00/barrel level again, touched $9.68/b and is now sitting at $49.84/b. Traders are concerned that even if Opec manages to agree to production cuts, they won’t be enough to offset rising global supplies.
The week ahead is the beginning of the end – for 2018. Seasonal holidays make it a very short month, but a lot of significant events and data are crammed into the available days. The US employment report is expected to be robust with forecasters predicting a gain of 220,000 jobs. Eurozone PMI data is on tap while EU/Italy budget talk headlines and Brexit news are the wild cards. The Reserve Bank of Australia meeting is Tuesday, and it's widely expected to leave rates unchanged. The Bank of Canada meeting is Wednesday and like the RBA, it is expected to leave rates unchanged. The quarterly Monetary Policy Report is also released.
Latest Market Insights
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research 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. To the extent that any content is construed as investment research, you must note and accept that the 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 under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)