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15.11 - is USD going to finally back down?

15.02.2019

 

We have been waiting for some light to be shed on the trade wat ending prospects since Tuesday, when the haze was lifted from our eyes and we saw that Trump shattered our hope for a trade deal. That did not really sit well with us and with all of the other traders, as we sent Asian currencies and Asian indices into a little selloff. During the week their performance was turbulent, but they mostly moved lower and lower.

Of course, this is not the case today. After Larry Kudlow – White House economic adviser – said that although for now nothing was signed yet, we are getting closer to it. This gave us hope and shed at least some light on the whole situation – trade talks are going on which is one of the best pieces of news that he could have hoped for.

All this trade talk drove traders away from dollar. Plus, it seems that yesterday’s testimony of Jerome Powell, concerning the state of American economy must have had some effect on the greenback. Until this night USD was growing and really not giving all of the other main currencies the possibility to breathe. But right now the situation is completely different. USD finally started to back down, which is seen in the growth of EUR and GBP.

Yen is still gaining as well. Safe haven status protects is very well, I should say. I have a feeling for as long as we do not have a trade deal, yen is going to do just fine – that is its task after all.

Oil is extending the gains, that we started to see yesterday. It seems that the present situation is leaving investors no choice, especially given that OPEC countries are talking about sitting down and talking supply-output together.

Here are the numbers for the end of the week:

Topix added 0.7 percent.

Kospi recovered 0.9 percent.

Shanghai Composite dropped 0.2 percent.

Hang Seng from Hong Kong recovered 0.2 percent.

S&P 500 futures grew 0.4 percent

Euro recovered 0.2 percent - $1.1022.

Pound grew 0.4 percent - $1.2877.

Yen grew 0.1 percent – 108.58 per dollar.

Canadian dollar added 0.2 percent - $1.3226.

Tesla increased 0.9 percent - $349.35.

Apple lost 0.7 percent - $262.64.

Facebook was barely moved – $193.15.

Amazon added 0.1 percent - $1754.6 per share.

Google advanced 1 percent - $1311.46.

WTI recovered 0.3 percent - $56.96 per barrel.

Brent increased 0.3 percent - $62.47 per barrel.

Gold declined 0.55 percent - $1465.3 per ounce.

Silver shed 1.1 percent - $16.85 per ounce.

Platinum decreased 0.2 percent – $879.29.