News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • 🇮🇳 Markit Manufacturing PMI (SEP) Actual: 56.8 Expected: 52.8 Previous: 52 https://www.dailyfx.com/economic-calendar#2020-10-01
  • Trump signs stopgap funding bill to avert government shutdown -BBG
  • #USD is again struggling against #ASEAN currencies as of late Could recent gains seen in $USDSGD, $USDMYR, $USDPHP and $USDIDR be at risk? Check out my latest tech update here - https://www.dailyfx.com/forex/technical/article/special_report/2020/10/01/US-Dollar-Struggling-Again-USDSGD-USDMYR-USDPHP-USDIDR.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/Pap5gVfswH
  • Heads Up:🇮🇳 Markit Manufacturing PMI (SEP) due at 05:00 GMT (15min) Expected: 52.8 Previous: 52 https://www.dailyfx.com/economic-calendar#2020-10-01
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.17%, while traders in Wall Street are at opposite extremes with 67.02%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/FRN1u3LYrM
  • What is seasonal change in volatility. Are we going through one right now? Find out: https://t.co/G0qfpOmMl2 https://t.co/3XvFhj5M92
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.20% 🇨🇦CAD: 0.19% 🇪🇺EUR: 0.19% 🇨🇭CHF: 0.15% 🇬🇧GBP: 0.12% 🇯🇵JPY: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/HhRYT1dlBW
  • White House Chief of Staff Mark Meadows: White House virus stimulus counteroffer above $1.5 trillion -BBG
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.73% US 500: 0.59% FTSE 100: 0.42% France 40: 0.22% Germany 30: 0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/yT6DCNP6jw
  • 🇮🇩 Inflation Rate YoY (SEP) Actual: 1.42% Expected: 1.42% Previous: 1.32% https://www.dailyfx.com/economic-calendar#2020-10-01
S&P 500, Crude Oil Price Rally in the Hands of Trump & Trade Talks

S&P 500, Crude Oil Price Rally in the Hands of Trump & Trade Talks

2019-01-09 00:30:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open – US China Trade Talks, US Shutdown, Crude Oil, S&P 500, Canadian Dollar

  • US China positive trade talk bets pushed S&P 500 higher as market mood continued improving
  • Sentiment-linked crude oil prices entered longest winning streak in about 8 months as CAD rose
  • All eyes on Donald Trump speech as trade talks enter into a third day, will stock gains continue?

We recently released our Q1 forecasts for currencies like the US Dollar in the DailyFX Trading Guides page

The S&P 500 entered its third consecutive winning streak which is the best spree since late November 2018. This has brought gains of around 10% since it bottomed in December. The backdrop for Tuesday’s optimism seemed to have stemmed from bets of positive outcomes on US China trade talks which are being extended into a third day.

Earlier in the day, US President Donald Trump dropped hints that negotiations are going along nicely, adding that he wants a deal soon to boost the markets. The general improvement in market mood led to gains in Asia, European and US benchmark stock indexes. Sentiment-linked crude oil prices rose for a 6th day, adding to its best climbing streak in about 8 months.

Crude oil also received a boost later in the day when the American Petroleum Institute reported that stockpiles contracted about 6.13m bbl last week. As a result, the Canadian Dollar was one of the best performing majors as it closely followed the commodity. Canadian government bond yields also rallied, perhaps reflecting fading BoC rate cut bets ahead of today’s monetary policy announcement.

The US Dollar had a rather choppy session, but ultimately finished the day cautiously higher. While rising bond yields supported the currency, fading demand for haven assets worked against it. Surprisingly, the pro-risk New Zealand Dollar weakened despite the rise in stocks. Partial gains in the more liquid and higher-yielding US Dollar might have prevented NZD from outperforming.

As the markets transitioned into Wednesday’s Asia Pacific trading session, there was a sudden and quick burst of aggressive ‘risk on’ trade. The Australian and New Zealand Dollars pushed higher as the anti-risk Japanese Yen fell short. The US Dollar also saw a slight pullback. This may have been as a result of Japanese shares following Wall Street higher.

The Topix Index opened almost 1 percent higher. Top-tier event risk during the session looks to be a speech from US President Donald Trump around 2:00 GMT. He will be addressing the nation about border security amidst a prolonged government shutdown which entered its 18th day. Newswires reported that he will not be resorting to declare a national emergency.

Unless one is avoided, the economic implications may weigh on sentiment and domestic equities ahead. Markets will also be awaiting more progress on US China trade talks. Should the results be in line with what the White House is alluding to, the recovery in market mood since December may extend. This risks weakening the Japanese Yen while boding well for sentiment-linked currencies such as AUD which may extend gains this week.

US Trading Session

S&P 500, Crude Oil Price Rally in the Hands of Trump & Trade Talks

Asia Pacific Trading Session

S&P 500, Crude Oil Price Rally in the Hands of Trump & Trade Talks

** All times listed in GMT. See the full economic calendar here

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES