{"id":142180,"date":"2019-02-20T07:40:51","date_gmt":"2019-02-20T12:40:51","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=142180"},"modified":"2019-02-20T06:55:27","modified_gmt":"2019-02-20T11:55:27","slug":"market-mood-dictated-by-us-china-trade-talks","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/02\/market-mood-dictated-by-us-china-trade-talks\/","title":{"rendered":"Market mood dictated by US-China trade talks"},"content":{"rendered":"
February 20, 2019<\/div>
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Article by ForexTime<\/a><\/strong><\/p>\n

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Stocks across Asia were mostly higher this morning after strong US earnings and cautious optimism over US – China trade negotiations influenced risk sentiment.<\/p>\n

US President Donald Trump\u2019s latest comment on how trade talks with China are \u201cgoing very well\u201d has clearly boosted confidence over negotiations between the two sides concluding on a positive note. However, with Trump also stating that the talks are \u201cvery complex\u201d and the current March deadline is not a \u201cmagical date\u201d, a breakthrough deal is still some distance away. A market-friendly outcome this week will be for both sides to agree on extending the 1 March deadline, which should provide more time for finding a middle ground on trade policy.<\/p>\n

Global equity markets are likely to be mostly dictated by US – China trade developments for the rest of the trading week.<\/p>\n

Is the Dollar about to lose its crown?<\/strong><\/p>\n

The broad economic and monetary policy divergence between the United States and other major economies has certainly supported the Dollar in recent months.<\/p>\n

However, the Greenback\u2019s outlook is slowly pointing in favour of bears, after a \u2018patient\u2019 Fed and a string of disappointing economic data from the United States reduced buying sentiment towards the currency. With the key fundamental drivers behind the Greenback\u2019s appreciation slowing diminishing, is King Dollar losing its grip on the throne?<\/p>\n

Investors will direct their attention toward the FOMC Minutes this evening which should offer some clarity into how \u2018patient\u2019 and \u2018flexible\u2019 the Fed wants to be when it comes to raising US rates. Markets will also be looking for reasons why the phrase \u201csome further gradual increases in the target range\u201d was removed from the statement. The Dollar is likely to depreciate against a basket of major currencies if the minutes reinforce speculation over the Fed taking a pause on rate hikes this year. With the combination of political uncertainty in Washington, soft domestic data, concerns over slowing US economic growth and expectations over a pause in US monetary tightening threatening the Dollar\u2019s competitive advantage, further downside is on the cards.<\/p>\n

Gold remains an investor\u2019s best friend <\/strong><\/p>\n

It has been an incredibly bullish trading week for Gold thus far with the precious metal hitting a fresh 10-month high this morning, thanks to Dollar weakness and fears over slowing global growth.<\/p>\n

Gold bulls remain in the driver\u2019s seat, with further upside expected as geopolitical risk factors and speculation over the Fed taking a pause on monetary tightening boosting attraction for the precious metal. The yellow metal has the potential to extend gains this evening if the FOMC minutes are presented with a dovish touch \u2013 ultimately weakening the Dollar even further. In regards to the technical picture, Gold is heavily bullish on the daily charts as there have been consistently higher highs and higher lows. The breakout and daily close above $1340 is seen opening a path towards $1353.60 and $1360 in the medium term.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/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<\/div>\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 Stocks across Asia were mostly higher this morning after strong US earnings and cautious optimism over US – China trade negotiations influenced risk sentiment. US President Donald Trump\u2019s latest comment on how trade talks with China are \u201cgoing very well\u201d has clearly boosted confidence over negotiations between the two sides concluding on […]<\/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-142180","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/142180","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=142180"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/142180\/revisions"}],"predecessor-version":[{"id":142186,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/142180\/revisions\/142186"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=142180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=142180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=142180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}