Trump Tweets: a Deal is Near, Optimism Rises
President Trump tweeted that a trade deal with China was close, leading to some optimism.
Equity markets continued to maintain the gains, indicating that the markets are already discounting the news.
The deadline for the next round of tariffs is due to come into effect from December 15th.
EURUSD Flat as GDP Revised Higher
GDP estimates for the United States were revised higher to show a 2.1% increase during the quarter ending September 2019.
The GDP figures were revised higher from 1.9%. Durable goods orders also rose 0.6%, beating forecasts of a 0.5% decline. As a result, USD was rising on the day.
EURUSD Turns Flat Near the Support
The euro was largely consolidating near the support area of the 1.0000 level. However, price action is trading flat just below this level. If there is a bullish close following the doji, we could expect to see further gains.
Crude Oil Inventories Rise Once Again
The weekly crude oil inventory report from the Energy Information Administration (EIA) saw another week of build-up in inventory.
For the week ending November 22nd, weekly crude oil inventories rose 1.6 million barrels. There were also widespread gains in gasoline stockpiles, pushing crude oil prices lower.
WTI Drops but Support is Forming
Crude oil prices broke past the resistance area of 57.87 – 57.64. Oil prices fell back to retest this level to establish support.
If support is confirmed, oil prices could be looking to post further gains. Alternately, if price slips below this level, then WTI is on track for a decline to the lower support at 54.71 – 54.42 level.
Gold Prices Stay Weak Amid US Data Dump
The precious metal was trading weaker on the day following the data dump from the US session. A broad patch of economic data came out better than the forecasts had indicated. A general improvement from the previous month’s data also put prices under pressure.
XAUUSD Trading Below Resistance
XAUUSD briefly tested the resistance level of 1462 before slipping lower. Price action is broadly trading flat within the 1462 and 1445 level.
If the current bearish sentiment prevails, gold could fall to the lower support level of 1445. The hidden bearish divergence on the Stochastics also confirms the downside for now.