Hopes for a breakthrough in U.S-China trade talks waned today, as tensions between the U.S. and China deepened on a set of new spats from the latest U.S. blacklisting of 28 Chinese companies, to capital controls, Visa bans, Chinese domestic issues over the Uighur situation and even the NBA scandal in China. NBA team general manager, Daryl Morey, posted a message on Twitter that supported HK protests which was met with massive backlash from Chinese media. Overall hopes for a fruitful resolution to the trade dispute during this week’s talks have significantly faded if not disappeared completely which can clearly be seen by the broader stock-market sell-off.
Global Bourses Dip, Brexit Talks Wane
Investors turned to less risky assets on Wednesday, while the pound wallowed near a one-month low on deepening uncertainty over Brexit. Britain is apparently giving up its efforts to strike a deal with the uncompromising European Union and will not return to the table.
All Eyes on Powell
Jay Powell helped to stop stock markets from losing further after announcing a QE-like expansion of the balance sheet which of course must not be confused with QE. In any case, the expansion of the US FED is likely to take off some pressure in USD strength and could bring the USD back down a bit in relative means. However, with most major greenback rival currencies currently subdued as they struggle with their own issues, the USD is still well-supported.
TRY Could Recover
After previously threatening to obliterate Turkey’s economy, Donald Trump mentioned Turkey as a big trade partner and important ally within NATO in his latest tweets which could help ease the situation and allow the TRY to put a stop to its massive slide despite military action in northern Syria.
Forex Preview: GBP Dips
The USD held high despite the expansionary statements from Powell also amid lack of better alternatives in the currency markets. The EUR failed once more to take the 1,10 level with further possible setbacks ahead given the Brexit and the internal economic issues pressuring the common currency. Elsewhere, the sterling continued to dip with no Brexit deal in sight and as the Oct 31st deadline is fast approaching.
Oil Subdued, Gold Above $1500, BTC steady
Crude Oil WTI traded below $53 but holding quite well given the whole risk-off sentiment and the EIA's oil demand forecast being cut. Elsewhere, safe-haven gold was bought on the dip and is trading back above the $1,500 level and could see further upside from here. Meanwhile, BTC is stuck slightly above the 8k level with a neutral outlook until further notice.
Watch the video here:
Global Bourses Dip, Brexit Talks Wane
Investors turned to less risky assets on Wednesday, while the pound wallowed near a one-month low on deepening uncertainty over Brexit. Britain is apparently giving up its efforts to strike a deal with the uncompromising European Union and will not return to the table.
All Eyes on Powell
Jay Powell helped to stop stock markets from losing further after announcing a QE-like expansion of the balance sheet which of course must not be confused with QE. In any case, the expansion of the US FED is likely to take off some pressure in USD strength and could bring the USD back down a bit in relative means. However, with most major greenback rival currencies currently subdued as they struggle with their own issues, the USD is still well-supported.
TRY Could Recover
After previously threatening to obliterate Turkey’s economy, Donald Trump mentioned Turkey as a big trade partner and important ally within NATO in his latest tweets which could help ease the situation and allow the TRY to put a stop to its massive slide despite military action in northern Syria.
Forex Preview: GBP Dips
The USD held high despite the expansionary statements from Powell also amid lack of better alternatives in the currency markets. The EUR failed once more to take the 1,10 level with further possible setbacks ahead given the Brexit and the internal economic issues pressuring the common currency. Elsewhere, the sterling continued to dip with no Brexit deal in sight and as the Oct 31st deadline is fast approaching.
Oil Subdued, Gold Above $1500, BTC steady
Crude Oil WTI traded below $53 but holding quite well given the whole risk-off sentiment and the EIA's oil demand forecast being cut. Elsewhere, safe-haven gold was bought on the dip and is trading back above the $1,500 level and could see further upside from here. Meanwhile, BTC is stuck slightly above the 8k level with a neutral outlook until further notice.
Watch the video here:
