Today’s Key Market Drivers: 19th November 2018
“US and China trade tensions will remain a focus early this week.”
Geopolitical tensions could be a theme early this week following a frosty reception between the US and China at the APEC summit this past weekend. Both countries were unwilling to compromise on any trade deals with the summit closing for the first time without an agreement on a final communique. Trade is the big stumbling block between both nations who have been repeatedly slapping trade tariffs on one another throughout 2018. I will be eager to see if traders on Wall Street use the weekends APEC summit as a reason to sell off stocks and rally safe haven currencies when markets reopen.
The US Dollar was the big loser on Friday after two US Fed officials commented on the potential for slowing global growth. Traders took the comments as a sign the Fed may choose to slow the pace at which it is raising interest rates. The US 10 Year Treasury Yield is back at 3.02% and if it slips back below 3% this week the US Dollar will likely continue to decline. The Pound will continue to remain volatile with a Brexit deal weighing heavily on the Prime Minister who this week could face a vote of no confidence from her colleagues. The Pound did benefit from a weaker US Dollar on Friday as did the Euro, Canadian, Aussie and Kiwi Dollars.
There are no major Central Banks releasing policy statements this week although the Minutes from the last RBA and ECB meetings will be published. The RBA Minutes are slated for release today at 11.30am AEDT and are likely to confirm what the RBA said on the first Tuesday of November in its official monthly statement. Rarely does the RBA Minutes give traders any reason to buy or sell the Aussie more than a few ticks and I would suspect today’s monthly Minutes will be no different. BOJ Governor Kuroda speaks at EuroPlus in Tokyo today and RBA Governor Lowe will give a speech in Melbourne on Tuesday. BOE Bank of England Governor Mark Carney will also give an address in London on Tuesday and whilst no official Central Bank statements are due this week plenty of Central Bank chiefs are speaking.
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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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