GBP Drops as Tory Loyalist Deals a Blow to PM May...

MARKET DEVELOPMENT – GBP DROPS AS TORY LOYALIST DEALS A BLOW TO PM MAY GBP: The Pound is on the backfoot this morning and losing ground against its major counterparts. GBP buckled early on after Tory loyalist Fallon dealt a blow to PM May, by stating that it may be possible to delay the UK’s departure in order to renegotiate a better Brexit deal. Elsewhere, President Trump added fuel to the fire after noting that it may not be able to trade with the US, adding that it is a good deal for the EU. Consequently, GBP has given up the 1.28 handle to trade in the mid-1.27s, support is situated at 1.2720 before the 1.27 handle. USD: The US Dollar is slightly firmer, up 0.1%. Commentary from Fed’s Clarida was in stark contrast to his comments a couple of weeks ago, where he signalled caution over growth in 2019. Today’s comments suggested little signs that the Fed would consider pausing rate hikes anytime soon. Clarida stated that gradual policy rate hikes remain appropriate, adding that he would back more rate hikes than expected if inflation surprised to the upside. However, given that inflation expectations have dropped amidArticle source:...

EUR/USD Moves in For Another Test at 1.1300 as USD Re-Claims 97.00...

EUR/USD Moves In for a Another Test of 1.1300 as USD Re-Claims 97.00 Talking Points: – The US Dollar has re-claimed ground above the 97.00 level on the DXY chart, and this is being assisted by waves of weakness in both EUR/USD and GBP/USD. Around the Euro, the optimism from yesterday has come into question after a set of conflicting reports this morning indicated a. that Italy was preparing to cut its planned deficit target followed by b. a contradictive report citing Matteo Salvini that indicated no revised budget will be sent to the EU. Around the UK and Brexit, Theresa May took another hit as her unpopular Brexit plan continues to draw criticism. – The remainder of this week’s economic calendar is busy, and tomorrow brings some commentary from FOMC Chair Jerome Powell. This will likely be highly-watched, as Fed meetings over the past couple of months have provoked some key inflection points across macro markets. The September rate hike is when the current run of USD-strength began; and the November rate decision was what helped to mark a short-term top in US stocks.Article source:...

Crude Rebound Stalls as Kuwait Seeks Stable Oil Market...

Oil Talking Points Crude struggles to preserve the rebound from earlier this week as Kuwait’s Oil Minister, Bakheet Al-Rashidi, argues that ‘it’s very early to talk about any cuts’ ahead of the Organization of the Petroleum Exporting Countries’ (OPEC) meeting on December 6, and the current environment is likely to keep oil prices under pressure as the Relative Strength Index (RSI) still sits in oversold territory. CrudeRebound Stalls as Kuwait Seeks Stable Oil Market It remains to be seen if OPEC will continue to actively respond to falling oil prices as Saudi Arabia considers a more clandestine approach in balancing the energy market, but there appears to be growing speculation for a major announcement next month as the group sees slowing demand in 2019. Keep in mind, the outlook for non-OPEC production remains mixed as updates from the U.S. Energy Information Administration (EIA) show field production holding steady at 11,700K b/d in the week ending November 16, and OPEC and its allies mayArticle source:...

Meet the Major Currencies: What Every Trader Needs to Know...

US Dollar (USD) The US Dollar (USD) is the official currency of the United States. It was established after Congress passed the Mint Act on April 2, 1792... Euro (EUR) The Euro (EUR) is the official currency of the Eurozone, a monetary union with 19 out of the 28 member states of the European Union (EU). It was established in 1999 with the intention of creating a single economic block that shared a common currency among all of its members... British Pound (GBP) The Pound Sterling, abbreviated as GBP for “Great British Pound”, is the official currency of the United Kingdom. It is the world’s oldest currency that is still in use... Japanese Yen (JPY) The Yen (JPY), meaning “round object”, is the official currency of Japan. It was established by the Meji government in 1871 as part of the state’s modernization program... Australian Dollar (AUD) The Australian Dollar is the official currency of Australia and all of its territories. It is also sometimes informally referred to as the “Aussie”... New Zealand Dollar (NZD) The New Zealand Dollar (NZD) is the official currency of New Zealand and all of its territories. ItArticle source:...

Crude Oil Prices Seek Cues from G20 Meeting After Dramatic Drop...

CRUDE OIL GOLD TALKING POINTS: Crude oil prices hit 13-month low, breach critical chart support Gold prices down as EUR/USD fall broadly boosts the US Dollar SP 500 futures hint at risk-on mood, G20 summit now in focus Crude oil prices plunged Friday, with the WTI benchmark sinking to the lowest in 13 months. Oversupply fears appear to remain the source of selling pressure. The latest drop seems to have been triggered by comments from Saudi oil minister Khalid Al-Falih, who said output increased again this month. Looking ahead, all eyes are on the G20 summit in Argentina. Central bank heads and finance ministers will begin to gather Monday. Reports cited by Bloomberg suggest oil ministers from Saudi Arabia and Russia are due to appear as well. Leaders of the participating nations will join in Friday and meet over the weekend. Thus far, Russia has been reluctant to join calls for another coordinated supply reduction. If incoming commentary suggests officials from Moscow and Riyadh are finding common ground on the matter, oil may recover. However, rhetoric hinting at divergence may compound selling pressure. GOLD MAY FALL AS YIELDSArticle source:...

Yen Sinks on Upbeat Market Mood Before G20, Euro Eyes Draghi...

TALKING POINTS – YEN, US DOLLAR, AUSSIE DOLLAR, G20, DRAGHI, EURO Yen down, commodity currencies up on optimism before G20 summit US Dollar lower as risk appetite firms, follow-through may be lacking Euro might decline on dovish comments from ECB President Draghi A chipper mood on most Asia Pacific stock exchanges was on full display in the G10 FX space as the trading week began. The perennially anti-risk Japanese Yen traded broadly lower while the sentiment-geared Australian, Canadian and New Zealand Dollars advanced. The Kiwi even shrugged off early data-driven losses to participate. The burst of optimism may reflect an expectant mood ahead of this week’s G20 summit in Argentina. Investors are hoping that a meeting between US President Donald Trump and his Chinese counterpart Xi Jinping may mark trade war de-escalation after months of tit-for-tat tariff hikes. Central bank governors and finance ministers form the participating countries are beginning to gather today. Traders will be watching the incoming flow of commentary for any clues about the tenor of the discussions being had before heads of state due to join the fray onArticle source:...