Speculation continues over US-China trade talks
The quiet day ahead for data releases looks set to be filled with other events around the world, particularly in the aftermath of the G7 meeting.
The EURUSD was quite flat overnight, hovering near the $1.11 mark for most of the day. The pair began the day at $1.11000 and made some small gains early, peaking at $1.11151 mid-session. From there however, it began its slow decline for the rest of the session, hitting lows of $1.10847 late in the day. It has come off those lows and is currently trading at $1.10897. The GBUSD was quite the opposite overnight, rallying over a cent at one stage. The pair opened the session at $1.22165 and looked shaky early, dipping to a low of $1.22079. The pound rallied off those lows, powering its way to a high of $1.23093 late in the day. It has come off those highs and is now trading at $1.22837.
The Dow remained largely flat overnight as investors sit back and wait for the latest trade news to unfold. The index opened at 25,939.80 and traded in a tight range for most of the day, before edging up to a high of 26,077.86. It reversed those gains late in the day, hitting lows of 25,719.65. It is now trading at 25,827.65. The Dax was a bit more lively than the Dow during the last trading session, but still only managed to post some small gains. The German index opened at 11,689.41 and dipped to lows of 11,609.61 early in the session. It bounced off those lows and climbed to a high of 11,777.86 late in the day. It came off those highs and eventually closed at 11,704.80.
The day ahead appears to be a quiet one, mainly due to the low volume of data being published, but the G7 Summit has brought a few trade deals into focus. US-China trade talks are seemingly back on track. Or are they? If they are, for how long? The unpredictability of these trade talks has sent markets in a spin and that looks set to continue. Possible free trade deals between the US/UK and Australia/UK are also being discussed, while a free trade deal has been struck between the US and Japan. However, markets are anxiously awaiting an outcome to the trade talks between the world’s two largest economies.
Data published today includes:
Australia – Construction Work Done
US – Crude Oil Inventories
Europe – European Private Loans and M3 Money Supply, German GfK Consumer Climate and Import Prices, Credit Suisse Economic Expectations
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