{"id":144438,"date":"2019-03-26T11:35:25","date_gmt":"2019-03-26T15:35:25","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=144438"},"modified":"2019-03-26T11:20:15","modified_gmt":"2019-03-26T15:20:15","slug":"risk-assets-rally-ahead-of-further-us-china-trade-talks","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/03\/risk-assets-rally-ahead-of-further-us-china-trade-talks\/","title":{"rendered":"Risk Assets Rally Ahead Of Further US\/China Trade Talks"},"content":{"rendered":"
March 26, 2019<\/div>
\r\n<\/div><\/div>

By <\/strong>Orbex<\/strong><\/a><\/p>\n

GBP Rises on Government Defeat in Parliament<\/strong><\/h2>\n

The European morning session on Tuesday was fairly subdued, with a\u00a0quiet data sheet,<\/strong>\u00a0though there some notable developments.\u00a0GBP rose<\/strong>\u00a0across the morning as the market reacted to news that parliament has voted in favor of\u00a0taking control of the Brexit process<\/strong><\/a>.<\/p>\n

The government suffered yet another historic defeat yesterday as parliament will now hold indicative votes tomorrow indicating how it would like to proceed with Brexit. However, the votes will not be binding for the government and\u00a0Theresa May has reaffirmed her opposition to holding a second referendum<\/strong>. Nevertheless, GBPUSD is higher this morning, breaking above yesterday\u2019s 1.3246 as traders sense the prospect that Brexit might be extended further than we are currently looking at.<\/p>\n

USD Weaker Ahead of Consumer Confidence Numbers<\/strong><\/h2>\n

EURUSD is also a little higher today.\u00a0<\/strong>The\u00a0EUR is taking advantage of\u00a0some USD weakness<\/strong>\u00a0following last week\u2019s late USD rally. USD posted a strong recovery following a\u00a0dovish FOMC meeting<\/a>. However, we have since seen a little softening in the greenback allowing EURUSD to climb back above 1.30. Looking ahead to today\u2019s US session, traders are waiting on\u00a0US Consumer confidence numbers.<\/strong><\/p>\n

Gold Prices Drop On Better Risk Appetite<\/strong><\/h2>\n

Safe haven inflows had been supporting Gold and JPY at the end of last week as equities were coming off. However, a mild\u00a0recovery in equities<\/strong>\u00a0over the European morning today has seen\u00a0gold prices dropping sharply.\u00a0<\/strong>They are\u00a0now challenging yesterday\u2019s opening price of 1313.46. USDJPY is currently challenging the 110.36 level which is key local resistance. Monetary policy divergence still favors USD over JPY at these levels, though safe haven inflow has recently seen USD trading lower against JPY.<\/p>\n

SPX500 Recovers on Trade Talk Optimism<\/strong><\/h2>\n

After piercing below the 2799.11 level at the start of the week, the\u00a0SPX500 has now made a solid recovery.\u00a0<\/strong>It\u00a0is currently knocking on the door of 2818.07 as the market displays optimism over the upcoming US\/China trade talks due to take place in Beijing. News of the content of these talks will likely be a key driver of risk flows this week. The\u00a0UK100 is also showing some upside<\/strong>\u00a0today. However, for now, it\u2019s still sitting below the key level of 7263.3 as the market awaits the outcome of tomorrow\u2019s indicative votes in parliament.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

Oil Prices Supported By Stockpile Drawdowns & OPEC Production Cuts<\/strong><\/h2>\n

Oil prices have started the week on a solid footing<\/strong>\u00a0also. Price is moving back above the 59.02 level which, for now, holds as support. Recent EIA data sheets have shown a continued\u00a0drawdown in US stockpiles<\/strong><\/a> which, along with\u00a0OPEC production cuts<\/strong>, is keeping oil prices supported<\/p>\n

Commodity Currencies Boosted By Oil<\/strong><\/h2>\n

The moves in oil have been good news for commodity currencies this week too.\u00a0Both CAD and AUD are rising<\/strong>\u00a0against USD. AUDUSD continues to remain supported at the .7021 level with price once again challenging the bearish trend line from 2018 highs. USDCAD is now testing the 1.3377 level as support after failing to make it back up to test the recent March high around 1.3466.<\/p>\n

Looking ahead today, we have only US Consumer Confidence on the data sheet. So, we are likely to see a quiet day\u2019s trading,\u00a0though a solid number should help keep USD supported once again.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex GBP Rises on Government Defeat in Parliament The European morning session on Tuesday was fairly subdued, with a\u00a0quiet data sheet,\u00a0though there some notable developments.\u00a0GBP rose\u00a0across the morning as the market reacted to news that parliament has voted in favor of\u00a0taking control of the Brexit process. The government suffered yet another historic defeat yesterday […]<\/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-144438","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144438","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=144438"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144438\/revisions"}],"predecessor-version":[{"id":144445,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144438\/revisions\/144445"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=144438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=144438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=144438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}