MORNING MEETING (DEC 7th): Let's prepare for the trading day
Good morning traders! It's December 7th, 2020. Let's prepare for the upcoming trading day with some important market updates.
PREVIOUS TRADE OF THE DAY
Our previous Trade of Day in EUR/AUD went nicely in our direction but the Buy Limit order never got triggered. The pullback was too shallow (strong EUR here!).
MARKETS
The week is starting with lower stocks in Asia (Nikkei -0.76%, Hang Seng -1.31%, Shanghai Composite -0.67%, but Australia XJO is up 0.62%), signaling a slight risk-off environment. Let's see if risk aversion will spill over in the European session.
GBP: Pound bulls have been disappointed that there wasn't a UK-EU deal over the weekend. We're entering the end phase of negotiations, and some reports suggest there has been some progress on fishery issues and "level playing field" demand. However, UK Government said there has been no breakthrough on fish. GBP index fell -2.8% overnight.
AUD: Despite strong China Exports (trade balance came in at 507B vs 373B expected), the Australian dollar failed to move higher. Lower stocks in Asia are dragging on the currency. Will be a trading candidate today if risk-off persists. Australian 10-year yields up 3.5 bps to 1.03%.
The US is preparing new sanctions on Chinese officials over their alleged role in Beijing’s disqualification of elected opposition legislators in Hong Kong.
RISK SENTIMENT
Risk is overall mixed to slightly risk-off, which led to higher demand in JPY. Besides lower Asian indices, Gold is up 0.13% overnight, and Copper fell 0.37%.
CURRENCY STRENGTH
The Pound is the worst performer of the overnight session on Brexit concerns. JPY and CHF are stronger, signaling risk-off, but NZD is higher. USD and AUD trading lower.
TRADE OF THE DAY
Coming in a separate post.
PREVIOUS TRADE OF THE DAY
Our previous Trade of Day in EUR/AUD went nicely in our direction but the Buy Limit order never got triggered. The pullback was too shallow (strong EUR here!).
MARKETS
The week is starting with lower stocks in Asia (Nikkei -0.76%, Hang Seng -1.31%, Shanghai Composite -0.67%, but Australia XJO is up 0.62%), signaling a slight risk-off environment. Let's see if risk aversion will spill over in the European session.
GBP: Pound bulls have been disappointed that there wasn't a UK-EU deal over the weekend. We're entering the end phase of negotiations, and some reports suggest there has been some progress on fishery issues and "level playing field" demand. However, UK Government said there has been no breakthrough on fish. GBP index fell -2.8% overnight.
AUD: Despite strong China Exports (trade balance came in at 507B vs 373B expected), the Australian dollar failed to move higher. Lower stocks in Asia are dragging on the currency. Will be a trading candidate today if risk-off persists. Australian 10-year yields up 3.5 bps to 1.03%.
The US is preparing new sanctions on Chinese officials over their alleged role in Beijing’s disqualification of elected opposition legislators in Hong Kong.
RISK SENTIMENT
Risk is overall mixed to slightly risk-off, which led to higher demand in JPY. Besides lower Asian indices, Gold is up 0.13% overnight, and Copper fell 0.37%.
CURRENCY STRENGTH
The Pound is the worst performer of the overnight session on Brexit concerns. JPY and CHF are stronger, signaling risk-off, but NZD is higher. USD and AUD trading lower.
TRADE OF THE DAY
Coming in a separate post.
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