Today’s Key Market Drivers: 14th November 2018
“Aussie Wages Numbers Will Be Key Today.”
US stock indexes took another dive on Monday in a volatile trading session that helped drive up the safe haven currencies as traders continue to shift money out of stocks and into fixed income worried higher interest rates will hurt US company earnings and may slow US and global growth. Monday started out with Asian stock indexes mixed but the one I urge you to follow, the Nikkei was down 3% in early trade and eventually closed down 2%. Don’t worry too much about what happens in the Asian trading session, it rarely ever is a global leader of finical markets and all the attention and trading activity that matters is always through the European and US trading sessions. If you want to follow an Asian stock index then follow the Nikkei in Japan.
The Euro and Pound were marginally higher on Monday as traders continue to flirt with buying back into both currencies as Brexit negotiations appear to be getting somewhere at last. A UK official was quoted on Tuesday as saying a deal was getting closer, which adds to the positive comments made over the past 10 days about financial services and trade deals. Once a formal agreement has been announced you should expect to see a strong and sustained rally on the Pound as Brexit being concluded is the signal to the Bank of England to continue to raise interest rates. The Euro will remain busy today as the deadline looms for Italy to submit a new budget proposal to the European Union. Italy’s 2019 budget proposal has already been rejected once and if the EU doesn’t like the second submission the Euro will likely be back on a slide lower.
The economic calendar is going to be important today as two data numbers will impact the Aussie Dollar. Consumer Confidence figures and the latest Wages Index numbers could combine together to shift the AUD half a cent or more. The numbers are due at 10.30am and 11.30am AEDT. Japanese GDP and China retail sales are unlikely to grab the market’s attention but in the European trading session, UK Inflation data and Euro Zone GDP will certainly be closely watched. In the US trading session, the latest Inflation figures and Average Weekly and Hourly earnings data is set for release and if higher than economist expectations the US Dollar will likely rally once again. In my view, the US data numbers today could be another tipping point for stocks to go lower and the US Dollar higher. The chances are they will beat market estimates.
Congratulations to EightCap for signing Formula One Driver Daniel Ricciardo as their new Brand Ambassador. I love trading through EightCap and to see Daniel’s face as the brand Ambassador is so exciting and is just another reason why I encourage all LTG GoldRock members to make the switch to EightCap, a broker who cares and a broker who looks after the interests of LTG GoldRock members.
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About the Author: Andrew Barnett
Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
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