Hong Kong drives major currencies

Daily Analysis - 21/11/2019

The yen rose 0.15% due to its safe haven nature


On Thursday the Japanese yen soared versus the greenback after experts on the matter said that it is highly questionable for a US-China trade agreement to be reached this year. That fact pressed down investor hopes for a preliminary settlement creating an immediate and supportive demand for safe-haven assets. On the other hand, the yuan dropped to a 14-day low in onshore trade due to concerns that the failure to strike a settlement and a possible rise in US taxes could additionally hurt China’s stuttering economy. Political pressures between US and China were also holding investors back following a source that told Reuters that U.S. President Donald Trump is going to sign into law two bills designed to promote anti-government protesters in Hong Kong.

EU stocks seen weaker

On Thursday European stocks were marked as weaker while relations between China and the US are worsening once again over Hong Kong. The concerns that “phase one” of a trade agreement between the two giants may not be reached before 2020 drives the stocks in the weak zone. According to Reuters Geng Shuang, the Chinese Foreign Ministry spokesman announced that China “condemns and firmly opposes” the first law.


Oil retraced lower

On Thursday Oil withdrew following a profit of more than 2% yesterday due to positive US crude inventory numbers, while a new dispute fueled anxieties of an additional delay in any US-China trade agreement. The trade war between the world’s two largest economies has tapped the global increase and controlled the possibility for future oil demand.


Gold lower for now

On Thursday safe-haven Gold went up, backed by anxieties that US laws toward Hong Kong could escalate pressures between the United States and China and hold back a preliminary trade agreement. US gold futures fell 0.1% to $1,472.19 per ounce. Spot gold increased 0.1% to $1,471.92 per ounce.


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