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Daily market commentary: The Dollar is down


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ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for November 21, 2019. This is not a trading advice. See details below:


FOREX

The Dollar is down against other major currencies, on a Thursday so far dominated by the publication of the minutes from the FED’s latest meeting, as well as by diminished hopes of a phase one trade deal between the US and China being signed any time soon.

American officials reportedly stated the unlikeliness of any deal between the two parts being struck this year. At the same time, President Trump is due to sign a bill already approved by the Senate, supporting human rights in Hong Kong. This is a move likely to upset the Chinese, further complicating the ongoing negotiations. The markets reacted to these latest developments, by adopting a risk-off stance, weighing down risk related currencies, driving losses of around 0.1% on the Dollar Index and boosting refuge assets, like the Yen and the Swiss Franc.

Ricardo Evangelista – Senior Analyst, ActivTrades

GOLD

Gold is trying to force the first key level of $1,470, helped by the weakening of the US Dollar. If prices ended today’s trading session above $1,470, we would have a first positive signal, while the area $1,450 remains an important support level.

While the precious metal is trying to recover the strength that boosted it in the first part of this year, the decline seen in the last few weeks can still be seen as a correction rather than an inversion, as long as prices hold above $1,450.

Carlo Alberto De Casa – Chief Analyst, ActivTrades

EUROPEAN SHARES

Global shares extended losses on Thursday as investor sentiment keeps being weighed down by mixed developments on the trade deal between US and China. Chinese Vice Premier Liu said last night he was optimistic about a phase one deal with the US but he also mentioned that confusion remained about US demands. This mixed tone has also been underlined on the US side when President Trump said he doesn’t think China is stepping up to the level he wants in these negotiations and that Beijing wants a deal more than he does. Market sentiment is now slowly getting dented, especially after multiple reports from sources close to the White House said a phase-one trade deal may not be reached before 2020.

In addition, investors have started their trading session very cautiously as President Trump is expected to sign legislation backing protesters in Hong-Kong, a move that is likely to make the US-China negotiations a lot more complicated. All sectors are trading in negative territory this morning, with the biggest losses being reported by the OMX-30 index in Stockholm and the FTSE-MIB in Italy.

Pierre Veyret– Technical analyst, ActivTrades

DAX 30

The main German index is registering one of the worst performances of the euro zone this Thursday, with all sectors drifting lower. The short-term bull trend is now clearly threatened as prices are currently challenging their bullish trendline above the 13,050.0pts support level.

A break-out of the strong technical and psychological 13,000.0pts zone could unlock a further bearish potential towards 12,785.0pts while a rebound over 13,050.0pts could push prices back to 13,165.0pts / 13,280.0pts by extension. Thyssenkrupp AG is one of the top movers this morning after the company announced the expansion of its restructuring process. Investors are fleeing the market after the company suspended dividend payment and warned of deeper losses to be expected for 2019/2020.

Elsewhere, Bayer AG and Infineon are also registering volatile moves as car makers, auto parts suppliers, miners, chemical stocks and manufacturers continue to react to the back-and-forth in the US-China trade talks so further corrections may be expected today.

Pierre Veyret– Technical analyst, ActivTrades

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Daily market commentary: The Dollar is down

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