Trade talks take centre stage

October 11, 2019

It is a relatively quiet day for data but today could bring some surprises after Donald Trump made some optimistic trade comments.

The EURUSD continues to make gains, breaking back through the $1.10 barrier overnight. The pair began the day at $1.09702 and dipped to a low of $1.09697 in the opening hour. The euro climbed off those lows quickly, peaking at $1.10335 mid-session. It came off those highs during the back end of the session and is now trading at $1.10065. The GBPUSD went off to the races overnight after the UK posted better-than-expected quarterly GDP data as-well-as some positive Brexit comments from Irish lawmakers. The pound opened at $1.22036 and dipped to a low of $1.22021 in the first hour of the session. It remained steady throughout early and mid-session trading before surging two and a half cents to hit highs of $1.24694. t has come off those highs slightly and is now trading at $1.24294.

The Dow plummeted early because of trade talks and they rallied late because of trade talks. The index opened at 26,367.72 and sunk to a low of 26,028.07 in the opening hour of the session. It regained most of those losses shortly afterwards and traded steadily over the next several hours. Late session trading saw the Dow rally on the back of positive trade comments by Donald Trump, sending the index to a high of 26,644.77. It is not far off those highs, currently trading at 26,589.69. The Dax put in another solid performance, aided by the rallying Dow. The German index started the day at 12,047.84 and edged down to lows of 12,009.01 in the opening hour. It bounced off those lows and made gradual gains throughout the first half of the day, the rallied late. The Dax hit a high of 12,199.08 before closing at 12,154.04.

The day ahead does not contain a large volume of data but Friday’s have a tendency to throw up some surprises. Positive trade remarks made by Donald Trump late yesterday has got markets in a good mood. Whether anything eventuates is a different story.

Data published today includes:

Japan – M2 Money Stock

Europe – German Final CPI, ECOFIN Meetings

Canada – Employment Change, Unemployment Rate

US – Import Prices, Prelim UoM Consumer Sentiment & Inflation Expectations, FOMC Member Eric Rosengren speaks


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