The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
Trump boosts the market optimism
Information is not investment advice
There is positive news concerning the US-China trade deal. We've prepared an overview of the current state of the situation.
As we were awaiting today's meeting of US President and top White House trade representatives, our anticipations were granted. At first, the risk sentiment has been boosted by the one single Trump's tweet.
His confidence in reaching a big deal soon resulted in the inflows of capital into risky assets.
After that, the breaking report by WSJ announced that the US trade negotiators are considering the possibility of a cut of tariffs on Chinese goods by about 50%. It also mentions the cancellation of planned December's tariffs.
How did it affect the market?
USD/JPY showed a great performance, rising by more than 50 pips. The pair has broken the 109 level and is looking forward to the 109.22 level.
The Australian dollar has been also moving up to the highest levels since the beginning of November, closer to the 200-day MA at 0.6910.
USD/CNH has retested the November's lows and gold inched lower.
What to expect next?
We recommend keeping an eye on the news, as any counter-report may reverse the situation in just a couple of moments.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The overall market sentiment is mixed as investors await the Federal Reserve’s statement today at the evening.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
The US NFP will be published on August 7 at 15:30 MT time.
The RBA will make a rate statement on August 4 at 7:30 MT time.