China and US may agree before 2020

Daily Analysis - 19/11/2019

Experts say that US and China are near a trade deal

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According to an expert from Pimco a bond investment company, the US and China could achieve and approve a “phase one” trade agreement between the two before 2020. Confidence that an agreement like that could be struck between the two nations declined the past days after news that the US and China hold divergent views on many points. A Chinese administration source said to CNBC yesterday that China is annoyed, following the US President Donald Trump’s statement that he hasn’t accepted the fact that he needs to take back tariffs. However, Pimco the managing director and vice-chairman, John Studzinski, announced on Tuesday that he still believes the two countries would enter a partial agreement.

Gold is gaining due to risk off sentiment


On Tuesday the popular safe haven Gold continued to remain constant following its most powerful level in over a week, supported by uncertainties regarding a trade agreement between the United States and China. US gold futures fell 0.1% to $1,470.49 per ounce.

Spot gold traded at $1,469 per ounce. It had scored its highest level since Nov. 7 at $1,475.39.

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Oil falls due to lack of developments over the trade war


On Tuesday US oil dropped for the second continuous day due to market fears over insufficient development linking China and the United States on removing trade taxes. Also increasing US inventories supported the fall. Brent crude futures fell 20 cents, to $62.23. West Texas Intermediate (WTI) crude declined 27 cents to $56.78 a barrel moving further off from a 2-month top last Friday when expectations for the trade agreement increased.

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Greenback dropped over uncertainties


On Tuesday the greenback slipped versus the Japanese yen while fading optimism for an introductory trade agreement between the United States and China damaged the request for the popular US currency.

The yuan reached a 14-day low against the greenback due to uncertainties regarding the US-China trade conflict. The Australian dollar too dropped following the minutes' report from Reserve Bank of Australia policy gathering that confirmed that the central bankers are examining cutting rates plan this month.

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