FED and Trade war will influence the markets once more

Weekly Report - 09/12/2019

Geopolitics and Data


Following powerful employment market figures from the United States, the Asian equity markets opened the week with a bullish appetite. Accompanied by the FED action coming in the middle of the week, the newest numbers will help influence the FED, despite the limited PMI numbers for November. However, on the geopolitical viewpoint, expectations that the US and China are near to agree on a deal probably have softened over the weekend. At the end of last week, the US government declared that new taxes will be rolled out on 15 December as prepared.

Week that was

On Friday gold was going towards a weekly gain while uncertainty concerning the fate of the US-China trade agreement pressed investors before US jobs report that present an additional perspective on the state of the American economy. US gold futures last Friday dropped 0.2% at $1,480.39. Spot gold was in a range at $1,475.35 an ounce and still went for a second straight 5-day increase for the week, while the greenback managed to have its most damaging week since October.


Main Focus This Week

For the EUR it’s a moderately calm day before on the economic calendar. Important reports are restricted to Germany’s trade numbers for October as there’s little confidence over the industrial sector and probably EUR will respond to the figures. On the geopolitical uncertainty front, chatter on trade and sentiment surveys from the UK will also be in the center. As for the pound it’s also a peaceful day regarding the number. There are no real stats expected out of the UK to present the GBP with direction. A shortage of stats leaves the pound subject to British politics. Sentiment polls and forecasts observed a surge in Tory party support at the weekend, which is pound positive.


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