November 14, 2018
Pulse of the Market
· Investor confidence has eroded by bitter trade tensions between the United States and China
· The euro edged up from a 16-month low yesterday as some investors consolidated positions
· Sterling increased, despite worry that the UK could leave the European Union without a deal
· The Canadian dollar fell following a drop in the price of gold and oil weighed on the market
|The U.S Dollar was lower yesterday, but still remained near a 16-month high in anticipation of Federal Reserve rate hikes. The U.S Dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.29% to 97.10, but remained near Monday’s high of 97.52. The greenback continued to push higher amid expectations that the Federal Reserve will raise rates in December and beyond, as the U.S economy gains strength. Meanwhile trade tensions eased, amid news that China’s trade negotiator could head to Washington ahead of a meeting between U.S President Donald Trump and his Chinese counterpart Xi Jinping at the G20 summit in Argentina later this month. White House economic adviser Larry Kudlow confirmed that the two countries were in talks yesterday, saying negotiations were “very positive,” Reuters reported. The euro and sterling rose on Tuesday following comments from a British official that signaled Britain and the European Union are close to clinching an agreement for the nation to leave the economic bloc as negotiators seek to avoid missing a deadline. A stronger Euro and sterling spurred profit-taking in the dollar, which reached a 16-month peak against a basket of currencies on Monday. Uncertainty over the terms of Brexit has bogged down both currencies as a deal is required to keep business open between the EU and the world’s fifth-biggest economy. The euro’s gain was limited by concerns about Italy’s budget proposals and downbeat German investor sentiment data. Sterling reversed much of Monday’s loss against the dollar. The Can adian dollar was lower yesterday, as a drop in the price of gold and oil weighed on the market. Oil prices were down yesterday after United States President Donald Trump pressured OPEC to not cut supply to prop up the market. Nervousness and uncertainty on the part of investors is never good news for the Canadian dollar, as the minor currency is dependent on risk appetite.|
|00:30||Australia Wage Price Index (YoY) (3Q)||Medium||2.3%||2.1%|
|02:00||China Retail Sales (YoY) (OCT)||Medium||9.2%||9.2%|
|02:00||China Industrial Production (YoY) (OCT)||Medium||5.8%||5.8%|
|04:30||Japan Industrial Production (YoY) (SEP)||Medium||-2.9%|
|07:00||German Gross Domestic Product n.s.a. (YoY) (3Q)||High||1.2%||2.3%|
|09:30||U.K Consumer Price Index (YoY) (OCT)||High||2.5%||2.4%|
|09:30||U.K House Price Index (YoY) (SEP)||Medium||3.2%||3.2%|
|10:00||Euro-Zone Gross Domestic Product s.a. (YoY) (3Q)||High||1.7%||1.7%|
|10:00||Euro-Zone Employment (YoY) (3Q)||Medium||1.5%|
|12:00||U.S MBA Mortgage Applications (NOV 9)||Medium||-4.0%|
|13:30||U.S Consumer Price Index (YoY) (OCT)||High||2.5%||2.3%|
|13:30||U.S Real Avg Hourly Earning (YoY) (OCT)||Medium||0.5%|
|23:00||U.S Fed’s Powell to Discuss Economy at Dallas Fed Event||High|
|23:50||Japan Housing Loans (YoY) (3Q)||Medium||2.7%|
The single currency edged up from a 16-month low on Tuesday as some investors consolidated positions but concerns about Italy’s budget proposals, poor German data and Brexit negotiations sapped broad appetite for the single currency. The euro has been pegged back by a series of negative headlines but it’s still struggling to gain momentum. Overall, the EUR/USD traded with a low of 1.1215 and a high of 1.1292 before closing the day around 1.1288 in the New York session.
The Japanese Yen pair traded just below a 16-month high versus a basket of peers, benefiting from safe-haven flows as investors shunned riskier assets because of political uncertainties in Europe and fears of a global economic slowdown. Investor confidence has been eroded by bitter trade tensions between the United States and China. Overall, the USD/JPY traded with a low of 113.56 and a high of 114.12 before closing the day around 113.79 in the U.S session.
The British Pound gained sharply after the UK and EU agreed on the text for a Brexit divorce deal. Prime Minister Theresa May will present the draft withdrawal agreement to her senior ministers on Wednesday for discussion and then decide on the next steps, her office said in a statement that confirmed several British media reports. Overall, the GBP/USD traded with a low of 1.2839 and a high of 1.3045 before closing the day at 1.2972 in the New York session.
The Canadian Dollar edged held near the multi-month low touched on Monday. Canada exports many commodities, including oil, and runs a current account deficit, so its economy could benefit from an improved outlook for the flow of trade and capital. U.S crude prices were down 2.1 per cent at $58.68 a barrel, extending their recent decline. Overall, USD/CAD traded with a low of 1.3212 and a high of 1.3261 before closing the day at 1.3231 in the New York session.
The Australian Dollar benefited from the development and is now trading as the strongest ones. On the other hand, Yen and Dollar turned softer, paring Monday’s strong gains. Though for the week so far, New Zealand Dollar is the strongest, followed by US Dollar and Canadian. Asian stocks gapped sharply lower follow steep fall in US equities yesterday. Overall, AUD/USD traded with a low of 0.7162 and a high of 0.7222 before closing the day at 0.7194 in the New York session.
EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is issuing a bullish stance. The Relative Strength Index is above 43 and lies below the neutral zone. In general, the pair has gained 0.64%.
Currently, GBP/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is indicating a bullish stance. The Relative Strength Index is above 53 reading and lies above the neutral zone. On the whole, the pair has gained 0.90%.
Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is indicating a bullish stance. The Relative Strength Index is above 60 reading and lies above the neutral region. In general, the pair has gained 0.59%.
This cross is currently trading below 14, 50 and 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is issuing a bearish signal. The Relative Strength Index is above 34 and lies below the neutral region. On the whole, the pair has lost 0.33%.
This cross is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The Relative Strength Index is above 57 and lies above the neutral region. In general, the pair has gained 0.54%.
|FOREX Closing Prices for November 13, 2018|
|Daily Pivot Points|
Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)
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