Central bank stimulus and trade talk development on account of Trump comments boost risk appetite.
Summary: Global equity market is seeing positive price action today across both Asian and European market hours. The positive price action is influenced by easing trade war woes and headlines which are hinting at scenario were there is some level of progress in trade talks between China and USA. Further, stimulus measures related decision announced by ECB is also providing positive influence to market bulls influencing positive price action in the global market. But trading activity was slightly subdued on account of holiday in Chinese markets. Following positive price action in Asian markets, European market also saw major benchmark indices and key equities trade positive with European markets seeing fourth consecutive session of positive price run. Favourable developments in European political scenario, easing trade war woes and measures from European Central Bank to boost economic strength are viewed in positive light inspiring a healthy wave of bullish price action in global equity market as trading session comes to close for the week. In the forex market, US Dollar continues to decline while major global currencies are seeing a boost in value on improved risk appetite in the global market.
Precious Metals: Rare metals are seeing divided price action in the global market today. While silver declined, traders took the opportunity to stock up on gold given weak USD as geo-political issues are yet to be fully resolved. But gains in gold were kept in check on account of healthy risk on trading activity.
Crude Oil: Crude oil is still trading in red today in US benchmark WTI but declines were minimal. As risk appetite improved and headlines are hinting at improvement in Sino-U.S. trade relations, crude oil demand outlook improved underpinning crude oil bulls in the global market.
AUDUSD: The pair is trading positive in the global market today as AUD bulls are well supported owing to positive developments in Sino-U.S. trade talk related events. Further, weaker USD in the global market also underpinned AUD bulls providing the pair with stable, steady bullish price momentum.
EURUSD: The pair is trading positive in the global market on boost gained from ECB stimulus measures and healthy risk appetite which combined with weak USD underpins EURO bulls. Further, positive macro data outcome in EU calendar also supports Euro on its positive price run today. Traders now await US macro data for short term profit opportunities.
GBPUSD: The pair is trading positive despite high odds of no-deal Brexit as support for Boris Johnson continues to crumble ahead of upcoming meeting with EU Juncker which combined with weak USD provides GBP bulls some level of positive support. Traders now await US macro data for short term profit opportunities.
USDCAD: The pair is trading positive in the global market despite weaker USD in the broad market. Weaker crude oil price weigh down commodity linked currency Canadian Loonie. But positive development in Sino-U.S. trade talks kept declines in check. Traders now await US macro data for short term profit opportunities.
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