Currency markets attract flows into perceived havens on Friday, as risk appetite weakens on the back of weaker-than-expected data from the eurozone and China.
Investing.com - It had to be one safe-haven or the other and the dollar triumphed at the expense of gold on Friday as signs of slowing growth in China sparked risk aversion across the globe.
LONDON MARKETS London markets ended lower on Friday, as slow Chinese business activity in November rebooted refreshed worries over global economic growth. Meanwhile, Brexit uncertainty continues to hang in the air amid a lack of signals U.
Bitcoin slid to yet another 15-month low, putting the world’s largest digital currency on track for consecutive losing weeks.
Gold prices continued to fall on Friday, as demand for the U.S. dollar rose after upbeat retail sales alleviated fears of a slowing economy. Comex gold futures for February delivery slumped 0.6% to $1,239.50 a troy ounce as of 10:36 AM ET (15:36 GMT). The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.55% to 97.59.
Investing.com - The U.S. dollar was higher on Friday after better-than-expected retail sales and amid expectations that the Federal Reserve will raise rates next week.The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.56% to 97.60 as of 10:02 AM ET (15:02 GMT).Retail sales accelerated in November, with core retail sales up 0.2%, alleviating fears of a slowing U.S. economy.Meanwhile investors are focused on an upcoming meeting of the U.S. central bank, which is expected to increase rates, with a 79. ...
The S&P 500 fell 27 points or 1% as of 9:30 AM ET (14:30 GMT), while the Dow decreased 189 points, or 0.7%, and the tech-heavy Nasdaq Composite slipped 88 points, or 1.2%.
“Most of these pairs actual volume is under 1% of their reported volume on [CoinMarketCap]. We noted only 2 out of the top 25 pairs not to be grossly wash trading their volume, Binance and Bitfinex,” the report said.
The U.K. prime minister on Friday said she would able to secure the “further clarifications” to her Brexit deal that she needs to win the approval of British lawmakers.
Investing.com – U.S. futures slumped on Friday, as investors worry about slowing economic growth in China and elsewhere.The S&P 500 futures fell 22 points or 0.86% to 2,622.62 as of 6:40 AM ET (11:40 GMT) while Dow futures slumped 210 points, or 0.85%, to 24,361. Meanwhile tech heavy Nasdaq 100 futures decreased 70 points, or 1%, to 6,682.Retail sales in China posted their weakest growth in 15 years, increasing worry about the world’s second largest economy as the country is impacted by trade disputes with the U.S. ...
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 1.1315. With the Fed raising rates next week and the economy showing signs of weakening in China and the Euro Zone, it’s going to take a lot to turn the EUR/USD around so our bias is likely to be toward the downside today.
The U.S. dollar was higher on Friday, as investors turned their focus to the expected Federal Reserve rate increase next week, even as uncertainty over next year’s hikes kept gains in check. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.5% to 97.52 as of 5:20 AM ET (10:20 GMT). "There is a lot of disagreement in the markets over the Fed's rate hike course in 2019 with traders expecting anywhere between one to four rate hikes," said Michael McCarthy, chief markets strategist at CMC markets.
Weaker crude oil prices undermine Loonie and provide an additional boost to USD which is seeing increased demand in broad market.
Gold prices were lower on Friday, as the U.S. dollar rose in anticipation of a Federal Reserve rate hike next week. Comex gold futures for February delivery slumped 0.3% to $1,242.95 a troy ounce as of 4:51 AM ET (9:51 GMT). The Fed is expected to increase rates by 25 basis points at its next meeting on Wednesday, its fourth rate hike this year.
Besides the stronger U.S. Dollar, it’s hard to find another strong fundamental for this week’s weakness in the gold market. Some of the move may be technically related. Not only did the market post a technically bearish reversal top on Monday, but it also broke key trend line support earlier today.
The primary downside target zone at this time is $1236.70 to $1232.00. Since the main trend is up, we’re expecting to see buyers re-emerge on a test of this zone. The price action is expected to continue to be largely influenced by the direction of the U.S. Dollar. Other contributing factors to a further sell-off will be rising Treasury yields and increased demand for higher risk assets.
The gold prices initially pulled back slightly during the Thursday’s session only to find enough bullish pressure to turn around and continue moving higher. The gold prices need to break above the $1260 level in the short term, in order to maintain the bullish sentiment and which will eventually send the price towards the $1275 level. The silver market remained bullish during the yesterday’s session trying to reach towards the $15 level which is a large, round, psychologically significant level.
The Euro continued to trade sideways during the Thursday’s session, as the market looks confused with the Federal Reserve’s stance and some of its comments lately on the interest rate hike. The 1.13 level underneath and 1.1450 level above will be the major support and resistance point for the market. The British Pound rallied a bit during yesterday’s session but is likely to experience significant resistance above as both 200 Day EMA line and 1.27 level has turned resistive.
The Federal Open Market Committee (FOMC) will hold a two-day meeting on December 18-19. It is expected to raise its benchmark interest rate 25 basis points, however, the focus for investors will be on the number of rate hikes protected for next year. Expectations for further rate hikes in 2019 have tempered lately due to fears of weakening U.S. economic growth.
Investing.com - Bitcoin and other major cryptocurrencies edged down on Friday morning in Asia, as digital token protocol Basis halted operations and returned its capital to investors due to regulatory concerns.
The Brexit headlines might continue to act as an exclusive driver of the sentiment surrounding the British Pound in near future.
the pair plays tug of war for upper hand as both sides lack decisive factor to push a breakout price action while fundamentals so far favor EUR bulls.
Some weak numbers out of China this morning weighed on the Aussie Dollar and Kiwi Dollar early, with a busy economic calendar putting focus on the EUR & USD