The UK and EU agreed on a draft plan

Daily Analysis - 23/11/2018

Euro and sterling went higher versus Dollar


On Friday the two major currencies GBP and EUR went higher versus the greenback following the UK and the European Union agreement on a draft plan and start incubating basically their future relationship before the important meeting next Sunday.

Investors, on the other hand, remained guardedly confident about the new draft document that is been accepted by the United Kingdom and the European Commission which described how the trading connection, safety, and other important subjects will work once the separation is achieved.

The Popular European currency the Euro and the Pound exchanged to the upside on Friday, having gained overnight about 0.2% and 0.8% each.

Traders are also still expecting more transparency about the Brexit agreement before gaining trust and invest more in the popular currency.

Oil reached this year’s lows

Earlier in the week the U.S. West Texas Intermediate crude futures collapsed by more than 1.8 %, to $53.30 a barrel, following of an October 2017 low touched. On Friday Oil prices depreciated to this year's lows in light but unstable speculation. Anxieties of an emerging global supply extension due to a gloomy economic outlook was the main reason why investors are in the fear zone for now.

Traders stated that despite an expectation that the Organization of the Petroleum Exporting Countries (OPEC) producer group will start cutting supply next year to stop any possibility for oversupply gave little relief.

International benchmark Brent crude oil futures touched their weakest level since the December last year at about $61.50 per barrel, before growing to $62.10. That was however about 0.78% from their last close.


Dow gave back 200-points while bears love Apple

On Wednesday's trading session the popular Dow finished merely under the flat line slaying about 200-points. That happened while the giant Apple abandoned the strong earnings from earlier in the day.

The popular index closed the day dropping only 0.94 points at 24,464.68 as it lost momentum going into the end of the day. The high of the day was up about 204.13 points. The popular mobile phone developer Apple also inflicted about a 2.0% loss near the end of the day to finish merely 0.1% lower.


Asia markets slip due to UK

On Friday Asia stocks dropped while traders continued their cautious sentiment due to increased anxieties among the United States and China, including doubts circling the U.K.'s separation discussions with the European Union. The Shanghai Composite dropped about 2.50% to finish at around 2,579.47 as the Shenzhen composite decreased by about 3.6% to 1,335.14. The mainland Chinese exchanges were one of the largest sufferers in the area, regards the percentage drops.

Hong Kong's Hang Seng index also slid about 0.50% through its last hour of trade.


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