ad
Forex Brokers Award 2020
Vote your favourite broker
Trade 100 Bonus - the best offer on Forex market

Trade News & China Data Keep Risk Sentiment Buoyed

Dec 17 2019, 03:48 PM (+06) | Orbex.com

Markets were trading somewhat quietly on Monday as the holiday season nears.

A lack of fresh details on the US-China trade deal kept markets in check. Equities posted modest gains on the day.

The USD was also on the back foot as trade tensions eased. Data over the weekend saw China’s figures showing modest improvement.

Euro Unchanged After Weak Flash PMI Data

The euro was little changed after fresh PMI numbers for December. IHS Markit’s flash PMI figures showed that the data for the services and manufacturing sector were mixed.

The December flash manufacturing PMI fell to 45.9 from 46.9 in November. Services PMI was up from 51.9 in November to 52.4 in December. Based on the above figures, forecasts show that the eurozone economy will close at the worst level since 2013.

EURUSD Consolidating Near Support

The common currency attempted to break past the price level of 1.1131. However, the gains were quickly reversed. The euro is seen retesting this price level.

We can see that price is consolidating near this support. If support is firmly established, we expect the breakout to the upside. The upper resistance at 1.1193 – 1.1180 will be the next key level of interest.

eurusd

Sterling Gives Back Election Gains

The pound sterling continued to retreat off the election highs. Focus shifts to this week’s BoE meeting. Although the election has cleared some uncertainty, investors are still doubtful.

PM Johnson promised to table the Brexit bill before Christmas. But concerns remain on whether the UK will be able to pull out of the EU by the January 31st deadline.

GBPUSD Forms a Lower High

The cable’s attempt to rebound was met with a lower high formation. Price action managed to rally to 1.3391 before reversing the gains. At the time of writing, GBPUSD is testing the minor support at 1.3320. If this level breaks, we expect to see a decline to the lower support at 1.32260.

GBPUSD

Gold Holds Steady as USD Pulls Back

The precious metal is trading steady on Monday. There were no major news reports that could impact the markets much.

Data from the US remains conflicting. The Empire State manufacturing index came out a tad lower. But, on the other hand, IHS Markit’s flash PMI’s were a bit better than expected.

XAUUSD Maintains Sideways Range

The precious metal is busy trading within the range of 1483 and 1462. In the process, price has attempted to break past the 1483 level twice. Failure to breakout higher above this resistance could signal further gains in the near term. This comes with the ascending triangle pattern currently forming.

XAUUSD

Orbex.com

At Orbex, the client is at the heart of everything we do and everything we do is designed to guarantee your satisfaction. Here’s how Forex Trading with Orbex will enhance your trading experience: Best-in-class customer service, including live chat and free webcall One-hour response time for sales and support requests Multiple asset trading and ECN accounts on MT4 0.9 pip fixed spread at ZERO commission Up to 1:500 leverage
ad