Market Overview
- The market witnessed significant movements, with WTI Oil prices rising near $61.30 on NYMEX as global trade war fears diminish.
- The US-China trade war continues to escalate, with President Trump increasing tariffs on China to 145%, and China retaliating in kind.
- Despite the ongoing trade war, positive developments in trade talks with the EU have been confirmed, leading to a pause in reciprocal tariffs on other trading partners.
- Major currency pairs and Gold also experienced notable fluctuations, driven by investor sentiment, economic themes, and risk factors.
Fundamental Analysis
- The EUR/USD pair retreated from intraday gains due to a rebounding US Dollar and rising inflation expectations.
- The Pound Sterling rose near 1.3200 against the US Dollar as US consumers expressed concerns over the economic outlook due to Trump's tariff policies.
- The AUD/USD pair turned negative during North American trading hours as the US Dollar rebounded after US Hassett dismissed fears of a recession.
- The Bank of Canada is expected to cut interest rates amid trade uncertainty, with markets leaning towards a 25bp rate cut.
Technical Analysis
- EUR/USD: The pair holds short-to-long term EMAs, indicating a strong uptrend.
- GBP/USD: Technical analysis indicates a bullish outlook for the Pound Sterling.
- USD/JPY: The USD is expected to trade between 142.30/144.30 against the Japanese Yen.
- Gold (XAU/USD): Gold prices corrected lower after a strong week, dropping to $3,208 from a record-high of $3,245.
Conclusion
- Despite escalating trade tensions between the US and China, positive developments in EU-US trade talks offer some relief to the market.
- Investors should closely monitor major economic events and data releases for potential trading opportunities.
- It's crucial for traders to choose the right broker for their specific trading needs to make informed decisions.
- The market outlook remains uncertain, with potential volatility due to ongoing geopolitical tensions and economic developments.
