{"id":118177,"date":"2017-12-15T10:15:05","date_gmt":"2017-12-15T15:15:05","guid":{"rendered":"http:\/\/countingpips.com\/?p=118177"},"modified":"2018-06-01T15:48:23","modified_gmt":"2018-06-01T15:48:23","slug":"global-stocks-dip-on-tax-reform-jitters-gold-shines","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/12\/global-stocks-dip-on-tax-reform-jitters-gold-shines\/","title":{"rendered":"Global stocks dip on tax reform jitters, Gold shines"},"content":{"rendered":"
December 15, 2017<\/div>
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Article by ForexTime<\/a><\/p>\n

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A sense of caution was felt across financial markets during Thursday\u2019s trading session as concerns surrounding the progress of U.S tax reforms resurfaced.<\/p>\n

Asian stocks were mostly lower early trading on Friday thanks to this growing uncertainty, while the lack of risk appetite exposed European shares to further losses. With Asian and European markets gripped by U.S tax reform jitters, Wall Street could come under pressure this afternoon as investors scatter away from riskier assets to safe-haven investments.<\/p>\n

Dollar slips on tax reform uncertainty<\/strong><\/p>\n

It has certainly been a rough trading week for the Dollar, which was thoroughly punished by low inflation concerns and growing uncertainty over the fate of U.S tax reforms.<\/p>\n

The impact of Wednesday\u2019s dovish US rate hike can still be reflected in the Dollar\u2019s price action, with growing concerns about the progress of U.S tax reform fueling the downside. Taking a look at the technical picture, the Dollar Index still remains under pressure on the daily charts. Repeated weakness below the 93.50 level may open a path lower towards 93.20 and 90.00 respectively.<\/p>\n

Currency spotlight \u2013 EURUSD<\/strong><\/p>\n

The Euro sharply depreciated against the Dollar during Thursday\u2019s trading session after the European Central Bank left rates unchanged in December.<\/p>\n

Although the central bank raised growth forecasts, inflation was still predicted to remain below the golden 2% target into 2020. With the ECB reiterating its pledge to provide stimulus as long as needed, bears were offered a fresh opportunity to attack the Euro currency. While the EURUSD has ventured higher during Friday\u2019s trading session, there is a suspicion that this could be based on Dollar weakness.<\/p>\n

Taking a closer look at the technical picture, the EURUSD is still under some noticeable pressure on the daily charts with 1.1850 acting as a resistance. Sustained weakness below this level may encourager a further decline back towards 1.1730 and 1.1680, respectively. Alternatively, a breakout above 1.1850 could open a path higher to 1.1920.<\/p>\n

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Commodity spotlight \u2013 Gold<\/strong><\/p>\n

Gold prices appreciated during Friday\u2019s trading session as the Dollar slipped, driven by investor concerns about the progress of U.S tax reforms.<\/p>\n

The upside was complimented by fears over low inflation in the United States, which clouded the prospects of higher interest rates beyond 2017. With the Dollar vulnerable to further losses, thanks to uncertainty over tax reforms and investors questioning the Federal Reserve\u2019s ability to raise rates three times in 2018, Gold (which is zero-yielding) could remain buoyant.<\/p>\n

From a technical standpoint, the yellow metal is in the process of a technical bounce on the daily charts, with the next level of interest at $1267. Alternatively, a failure for prices to keep above $1250 has the ability to open a path back towards $1236 and $1230, respectively.<\/p>\n

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Disclaimer:\u00a0<\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime A sense of caution was felt across financial markets during Thursday\u2019s trading session as concerns surrounding the progress of U.S tax reforms resurfaced. Asian stocks were mostly lower early trading on Friday thanks to this growing uncertainty, while the lack of risk appetite exposed European shares to further losses. With Asian and […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-118177","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/118177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=118177"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/118177\/revisions"}],"predecessor-version":[{"id":118185,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/118177\/revisions\/118185"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=118177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=118177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=118177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}