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Market Update – US Indexes New Records – GBP slips despite USD retreat on Weaker Confidence

jeffriess
November 27, 2019
by Joseph Jeffriess, Market Analyst

Article Recap

US Stocks hit new records USD stalls after weaker CB consumer confidence data - Gold rallies off the back of a weaker USD, decoupling from stocks (for now) - GBP falls remaining round bound ignoring risk currency fightbacks

US Indexes at new records as buyer interest ignores weaker consumer confidence.

Risk was mainly back on track overnight with the AUD, EUR and shares finishing Tuesday session in the black. RBA governor Lowe gave the AUD a small boost early in the European session but this faded away until we saw a surprise drop in US CB consumer confidence. This set the tone for the USD sending it lower. The EUR, AUD and Gold snapped losing streaks to end the session higher. Gold looks to have dropped its hedge position to stocks atm gaining on a weaker USD. We’ve seen Gold fall with rising stocks but this wasn’t the case overnight as US indexes hit new 2019 records, gold closed just over $6 higher. Oil was another winner adding 0.59 %, trade deal and OPEC cuts maintaining buyer demand. A weaker USD and higher oil lead the USDCAD lower.

The GBP was a surprise, it traded lower to the USD and JPY and remains very much range-bound on the daily charts.

This morning we’ve seen further gains on the ASX and Nikkei as they continue to be boosted by O/S leads. Australian construction done figures came in better than expected this morning climbing to -0.4%. This is a solid increase on the last data of -2.8%. The AUD is struggling to the USD but firmer to the JPY.

In today’s update video we recap last nights moves and take a look at today’s morning session. We look at tonight’s upcoming key data and breakdown the GBPUSD, GBPJPY and Gold daily price charts.

Good trading from Eightcap.
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