US dollar and Stocks Hold Steady ahead of Trump-Xi Meeting

US dollar and Stocks Hold Steady ahead of Trump-Xi Meeting


Major US indices ended the session weaker yesterday as investors await the meeting between the United States President Donald Trump and the Chinese President Xi Jinping at the G20 summit. The US stock market was bolstered since the beginning of the week by the optimism of reaching a trade deal between the two biggest economies and the comments of the Federal Reserve Chairman Jerome Powell concerning interest rates. The Dow Jones Industrial Average futures rose 0.2% to 25370, the S&P500 futures added 0.2% to 2743, and the Nasdaq futures ended flat at 6907. A trade deal between China and the United States could spark investors' risk appetite, whereas a failure of reaching a deal could force investors to rush to safety.


The dollar index which measures the greenback against a basket of currencies lost 0.1% to 96.79. The greenback has been under pressure on the growing expectations that the Fed could be slowing down the pace of interest rate hikes. According to the Fed chairman, interest rates are "just below" the neutral rate levels. Also, the minutes of the FOMC November 7-8 meeting revealed that the Fed is adopting a cautious tone. However, almost all policy makers affirmed a rate hike soon. On the other hand, the dollar could benefit in case of an escalation in the trade issue between China and the United States as it will boost the demand for safe-haven currencies. The USDJPY fell 0.2% to 113.48, and the EURUSD added 0.2% to $1.1392.


Gold prices finished higher for the second consecutive day as the dollar and yields weakened. The gold ounce rose 0.3% to $1224, and the silver ounce settled almost flat at $14.29.


Oil prices surged on hopes of OPEC supply cut next week. OPEC and Russia will meet on December 6-7 in Vienna to discuss lowering production amid signs of a global economic slowdown. The West Texas Intermediate crude futures climbed 1.9% to $51.23, and the Brent futures gained 1.7% to $59.69. The US energy services firm Baker Hughes will report the US oil rig count later today.

Major Economic Events

GMT Country Event Expectation Previous
10:00 EU CPI (YoY) (Nov)  2.1% 2.2%
11:00 EU Italian GDP (YoY) (Q3) 0.8% 0.8%
13:30 CA GDP (MoM) (Sep) 0.1% 0.1%
13:30 CA GDP Annualized (QoQ) (Q3) 2.0% 2.9%
18:00 US U.S. Baker Hughes Oil Rig Count   885


The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based. Read More
Read More
Mail Call Chat