News & Analysis

Dow Jumps 255 points – Tax Reform edges closer; GBP volatile trade; EUR declines

Nov 29, 2017 | Daily Market Outlook

Today’s high impact news:

OPEC Meetings all day
00:30 USD Prelim GDP
01:00 GBP BOE Gov Carney Speaks
02:00 USD Fed Chair Yellen Testifies
02:30 Crude Oil Inventories

US stocks surged to new records overnight as the Senate Budget Committee approved the Senate’s tax plan on Tuesday, bringing the upper chamber closer to a floor vote. The Dow Jones closed 255.93 higher, the S&P500 closed 25.62 points higher. The major indexes briefly pared gains after North Korea fired a missile that landed in the waters off the coast of Japan. Tuesday marked the first time since mid-September that North Korea launched a missile. European stocks turned positive earlier in the night, UK stress test results came in positive. The Bank of England’s stress tests revealed that no banks need to raise extra capital for the first time since the tests started in 2014. The FTSE closed 76.75 higher is a very strong session. The DAX gained 59.33 points.

The dollar rose against a basket of currencies on Tuesday, rebounding from a two-month low hit the previous day, as risk sentiment improved and the confirmation hearing of new Federal Reserve chair Jerome Powell kicked off. The USDJPY held 111.04 support and closed 39 pips higher. USDCAD hit 5-day highs adding 47 pips. The EUR traded lower to most majors, EURUSD traded 60 pips lower. The GBP had a wild night, as Brexit-related doubts began to re-exert their grip on the currency. A deal on the Northern Ireland-Irish border, a key part of Brexit talks, has become trickier as the Irish government has been pushed to the brink of collapse. The GBPUSD traded in a 167 pip range, at one point tested 1.3220 to the downside.

OPEC meeting is held today, they run for the entire day. The market is awaiting details about an extension to OPEC-led production cuts that have boosted prices. Delegates recommend reviewing the deal in June, which would be perceived as a shorter extension of cuts than expected. Oil traded slightly lower overnight. We expect quite trade until details emerge.

US30 – put on a solid show last night, flying through 23,595 resistance and making a new breakout into fresh all-time highs.

GBPJPY – saw volatile trade overnight. Price ran a 232 pip range. Price has continued to rally this morning, we’re waiting to see the reaction from 149.37 resistance if it’s reached.

Good trading from Eightcap.

Sources; Reuters, CNBC

* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.

In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.

Follow Us