Financial market remained tense over US-China meeting on Buenos Aires
- Everything the stocks have accumulated in the last two days, are hanging in the tangible balance, as Donald Trump and Xi Jingping are ready to meet in the sidelines of G20 summit
- USD remains weaker, EUR fails to test 1.1400 and GBP is hanging around a tight range below 1.2780, thanks to the speech made by FED chair Jerome Powel
- Stocks are tense and potential buyers are stepping off of the market, in the wake of US-china meeting at the G20 summit in Buenos Aires, Argentina
- High market volatility is expected and a low-leveraged trade is recommended
This week, the American Dollar has made very little progress, and as Friday has arrived, fresh attentions on the US-China trade war has emerged, as US president Donald Trump and Chinese President Xi Jingping are ready to meet the terms of trade deal.
As the stakes are too high and high market volatility is expected, already the FED chair Jerome Powel had mentioned that the Central bank wouldn’t be the culprit in the face of highly turbulent market ahead.
The onus is now on President Donald Trump to end the trade war or to reach a tradeable solution, however, he is more likely to be on the pre-existing course, and there is very little chance of development regarding the US-China trade war, as China has also shown tremendous amount of stubbornness and they are not going step away from adding new tariffs over US goods as well, as the Chinese Commerce minister mentioned.
Unfortunately, for the traders, the market outcome could not be predicted properly at this moment and everything depends upon the outcome of US-China meeting on the sidelines of G20 summit.
Having mindful of significant risk involved in the next week’s trade, the traders should be beware of high volatility and market turbulence and a low-leveraged trade is suggested.
DXY daily chart
After two days of sideway swinging movement, USD not been moved a lot, and at this moment, GBP/USD and EUR/USD pair are trading around 1.2770 and 1.1321 regions. However, any melt up situation could Jolt the USD higher to 97.69 and on the flipside, a downside momentum below 96.04 (the mid-November low) seems quite likely to happen, skyrocketing the EUR towards a retest of 1.1400 and GBP to its key resistance level at 1.2890, as US market has started to show the signs of strain of trade war.
Read more US-China trade war here
[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]