Markets Doubt US-Sino Progress, ECB-Speak, US Data Eyed

Daily Update – 26th November 2019

Yesterday's Focus

• EUR IFO Business Climate

Yesterday's Explained

The week has started with the greenback appreciating against most major rivals, on the back of another peak of optimism related to the US-China trade relationship. The latest news indicated that the Chinese government said it would raise penalties on intellectual property theft on Sunday, something the US has been demanding for long.

The euro edged lower against the U.S. dollar on Monday, as investors remained cautious about the outlook for the euro zone economy in the near term. Though latest data showed business morale in Germany, Europe’s biggest economy, improved slightly in November, growth prospects for the euro zone remained uncertain as business growth in the region almost ground to a halt this month.

The Pound was the exception to the rule, gapping higher at the weekly opening and surging against the greenback to 1.2911 during US trading hours. The positive momentum of the UK currency was backed by renewed optimism related to Brexit, as weekend polls showed that Conservatives continued leading voting intentions.

The dollar strengthened against the Major Rivals on Monday, as growing signs the United States and China are inching closer to a trade deal boosted risk appetite. Broader markets remained focused on the likelihood of a trade agreement between the United States and China by year-end, which U.S. National Security Adviser Robert O’Brien said was still possible.

.

Today's Focus

• USD Fed’s Chair Powell Speech, Consumer Confidence, Housing Price Index
• AUD RBA’s Governor Lowe’s Speech

Today's Market

This Tuesday, Germany will release the December GFK Survey, seen unchanged at 9.6. The US will publish some minor figures and the CB Consumer Confidence survey, the kingdom’s calendar will remain light, with the only figure scheduled being the October BBA Mortgages Approvals.