Today’s Key Market Drivers: 28th November 2018

“Donald Trump’s Twitter feed send the Pound lower on Tuesday.”

You may have seen a sharp spike lower on the Euro and Pound early into the European trading session on Tuesday which was on the back of a Tweet from President Trump who said he would stand firm on lifting Trade Tariffs on China from 10% to 25% and also said the UK leaving the European Union could make trade deals between the USA and UK more difficult. The Pound was again sold following Trump’s remarks and continues to remain under pressure with the UK government unlikely to approve the UK and EU Brexit plan agreed to last weekend. Trump and world leaders will meet in Argentina this coming weekend for the latest G20 meeting which is certain to keep Trump’s Twitter feed busy and may create some gaps on currency markets when platforms reopen on Monday.

The AUD and NZD have both been drifting lower this week and any US v China trade tensions will likely result in both currencies falling further. The Aussie Dollar is often seen as a proxy currency for relations between China and US and recently when we had trade tensions between both countries the AUD and NZD fell against the US Dollar. Before the weekends G20 summit the latest US Fed minutes will be released and traders will be keen to read what the committee was discussing behind closed doors. The market will also be keen to hear from US Fed Chairman Powell who is speaking alongside former US Fed Chairman Alan Greenspan. The focus will be on if Powell discusses the Fed’s plans for interest rates in 2019. He is due to speak at 4.00am AEDT on Thursday morning.

US Consumer Confidence data met the markets expectations on Tuesday and whilst the US 10 Year Treasury Yield has been languishing down at 3% for the past week the greenback has been generally supported against most of its major rivals. Today sees the publication of a financial stability report for New Zealand and has the potential to increase the volatility on the Kiwi Dollar. German Consumer Confidence data is set for release but won’t be a market mover as all eyes will be on the US trading session when US Trade Balance and 3rd Quarter GDP number are released.

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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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