After trading a bit heavy in the early week, GBP/USD is starting to show upward momentum. More importantly, it has held above a previously broken trendline which signals more upside.
EUR/USD made a bullish bounce after breaking the round psychological 1.10 support level. The resistance line (red) and wave 4 (orange) pattern, however, make a bearish bounce likely.
Essentially, I expect gold traders to react today to the direction of U.S. Treasury yields and equity markets. Falling yields and stocks will underpin gold prices. Rising yields and increased demand for equities will be bearish for gold.
Investors will be keeping a close eye on Christine Lagarde’s speech on Friday for clues on future policy initiatives, as she is due to speak at a banking conference in Frankfurt.
The British pound is trading sideways for a second straight day and I expect the currency to continue to drift throughout Thursday trade. We could see some volatility on Friday, as the U.K. releases key manufacturing and services reports.
Some traders are calling the negative headlines “noise”, further saying that traders are basically following the news on the trade war, and having a hard time predicting when we will have good news or bad news. This creates uncertainty and investors tend to leave risky assets when there is uncertainty and seek protection in the safe-haven Japanese Yen.
The AUD/USD and NZD/USD started to bounce back after Chinese Vice Premier Liu He told Bloomberg that he was “cautiously optimistic” in reaching a “phase one” deal, but added that he was “confused” about U.S. demands.
Investing.com - U.S. futures were down slightly as trade tensions remained in focus after reports that China has invited Washington for face-to-face talks in Beijing.
Investing.com - Prices of the safe-haven gold fell on Thursday in Asia despite doubts over a phase on trade deal between the U.S. and China.
Investing.com - The U.S. dollar slipped on Thursday in Asia after the release of the Federal Reserve meeting minutes. Tensions between the U.S. and China rose following reports that U.S. President Donald Trump might sign a bill that supports Hong Kong protesters.
The HK Bill in support of the protestors is on its way to the Oval Office. Trump’s signature may well raise doubts over a phase 1 trade agreement.
At this time, the consensus among economists is that the Fed will now pause after cutting rates three times in 2019, with its benchmark rate in a range of 1.5% to 1.75%.
With the new year just around the corner, cryptocurrency investors and traders are getting ready for what the markets might have in store in 2020. Hopefully, with a brand new year comes brand new blood to fuel the next big crypto bull run. According to key cryptocurrency analysts such as Mati Greenspan, Alessio Rastani, Trace Mayers, and PlanB, there's a high probability of a Bitcoin bull run sometime within the next 12 to 18 months. Funnily enough, some economists are predicting an economic recession during the same period. Will that be the final catalyst for a massive cryptocurrency bull market? If so, will altcoins such as Litecoin enjoy some huge gains? Let's take a look. Bitcoin price prediction The aboveThe post What will it take for a Litecoin bull run in 2020? appeared first on Coin Rivet.
Gold markets continue to be very noisy, initially rally during the trading session in the Asian hours, before rolling back over yet again. At this point, the market looks as if it is trying to for some type of major support level.
The US dollar initially pulled back against the Japanese yen but then turned around to show signs of support. At this point, the market then looks as if we are trying to continue the move higher, but obviously there is a lot of new slow out there that continues to throw risk appetite around.
The British pound pulled back a bit during the trading session on Wednesday, only to find buyers underneath in turn things around. At this point, the market is continuing to build up a case for higher movement, based upon the flag.
The British pound initially fell during the trading session on Wednesday but found enough support underneath the turn around and rally yet again. The British pound rallies against the Japanese yen in any “risk on” scenario.
The Euro initially fell during trading on Wednesday but turned around to show signs of life again. At this point, the market is likely to continue the choppy behavior that we have seen, at least of the last couple of years. At this point in time I would anticipate more back and forth.
The Australian dollar fell a bit during the trading session on Wednesday but found support just below the 50 day EMA to rally again. At this point, the pair continues to be very sensitive the Chinese headlines, which of course came out overnight that the Chinese were very upset about Congress passing a resolution supporting Hong Kong protesters.
* U.S. bill on Hong Kong human rights angers China * Trump threatens to raise tariffs on Chinese imports * Chile peso slides again as protests rage on * Mexican peso, Colombian peso ease By Sagarika Jaisinghani Nov 20 (Reuters) - Latin American currencies eased on Wednesday as concerns about flaring U.S.-China trade tensions kept investors from buying into riskier assets, while the Chilean peso extended losses for the third day in a row as anti-government protests showed no signs of letting up. Global stocks retreated from 22-month highs and the dollar edged higher as a U.S. bill meant to protect human rights in Hong Kong amid pro-democracy protests angered China, adding to jitters from a threat by U.S. President Donald Trump to raise tariffs on Chinese imports if a deal was not reached soon.
Investors await the release of the Federal Reserve minutes, and predictably, there is little movement ahead of this major event. We could see some volatility from the British pound and Canadian dollar after the release, which is scheduled for 17:00 GMT.
Based on the early price action and the current price at 1.1056, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the long-term uptrending Gann angle at 1.1059.