The market takes breath after the long rally. What opportunities do traders have today?
Trump boosts the market optimism
There is positive news concerning the US-China trade deal. We've prepared an overview of the current state of the situation.
As we were awaiting today's meeting of US President and top White House trade representatives, our anticipations were granted. At first, the risk sentiment has been boosted by the one single Trump's tweet.
His confidence in reaching a big deal soon resulted in the inflows of capital into risky assets.
After that, the breaking report by WSJ announced that the US trade negotiators are considering the possibility of a cut of tariffs on Chinese goods by about 50%. It also mentions the cancellation of planned December's tariffs.
How did it affect the market?
USD/JPY showed a great performance, rising by more than 50 pips. The pair has broken the 109 level and is looking forward to the 109.22 level.
The Australian dollar has been also moving up to the highest levels since the beginning of November, closer to the 200-day MA at 0.6910.
USD/CNH has retested the November's lows and gold inched lower.
Of course, the announcement was positive for the stock market. Nasdaq reached a fresh all-time-high at 8,496, and S&P has risen to 3,177.
What to expect next?
We recommend keeping an eye on the news, as any counter-report may reverse the situation in just a couple of moments.
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.