Trade Negotiator Comments Keep Optimism Alive
Top trade negotiators of China and the United States apparently held a phone conference on Tuesday. Both parties said that there is an increase in the chances of the “phase one deal” being reached.
A spokesperson from China said that both sides reached a consensus to properly resolve the trade-related issues.
Consumer Sentiment in Germany Improves for December: Gfk
The German institute Gfk, on Tuesday, said that the consumer sentiment in Germany improved for December. The index picked up to 9.6 points from November. The data revealed that economic and income expectations rose significantly for the month ahead.
Compared to the same period last year, consumer sentiment was still lower. This was attributed to the global economic slowdown and trade conflicts, including Brexit.
Support Holds Firm for EURUSD
The currency pair posted a modest rebound near the support area of the 1.1000 region. However, there is no upside momentum building up.
The Stochastics indicate weakness, with the indicator strongly in the oversold levels. In the near term, EURUSD will need to rise above 1.1030 to confirm further upside.
Sterling Falls as Labor Party Narrows Lead in Opinion Polls
The pound sterling fell on Tuesday after the latest opinion polls saw the trailing Labor party catching up. The opposition party narrowed the lead from 18 points to 11. The UK is set for an election on December 12th.
The Conservative party remains the favorite, with PM Boris Johnson set to go ahead with the Brexit deal if he achieves a majority in the UK parliament.
GBPUSD Slips Off Support Once Again
The currency pair broke past the support area of 1.2865 on Tuesday. However, the declines are continuing to consolidate near this price point. Therefore, there is a risk of a move back to the upside. Unless GBPUSD clears the previously established lows at 1.2825, we expect price action to remain near 1.2865.
Gold Prices Subdued Despite Drop in US Consumer Confidence
The latest consumer confidence report from the Conference Board showed a decline in the index. The CB Consumer confidence index fell to 125.5 in November, down from October’s 125.90.
The decline marks a fourth consecutive fall in the index. Yet, gold prices did not react much to the news. The risk-on sentiment seems to be keeping the price of the safe haven in check.
XAUUSD Attempting a Feeble Rebound
The precious metal was rather subdued on Tuesday. Price action is looking to bounce back higher. But the price level near 1462 is likely to act as resistance.
If the price gains are capped here, we could expect a move toward the lower support at 1445 in the near term. But keep an eye on the Stochastics indicator which is just rising up from the oversold levels. This could indicate a possible move back above the 1462 handle.