Until now, there is no sign that the arrest of Huawei’s CFO will disrupt trade negotiations and agreements between the United States and China. Today, market sentiment is improving somewhat amid other signs that the parties will follow the announced path. Nevertheless, the US dollar is still trading firm, despite this news background. The dollar index is trading around a half-year high.
Futures on US indices managed to maintain growth, and Wall Street began the day deep in the green zone. Global markets are also growing today, and there is some optimism in the trade issue. In any case, the fact that trade negotiations between the US and China continued, also contributed to the growth of sentiment. All stock markets in Asia grew by more than 1%, with the exception of China. European markets are also showing steady growth.
The situation around Brexit continues to remain in the spotlight. Today in the UK the vote is expected for PM confidence among deputies. Obviously, 48 votes are not enough to cause the British Prime Minister to resign, 158 is necessary to win. At a session on Wednesday, sterling is the strongest of the major currencies, but it is consolidating at the bottom of yesterday's ranges, stopping around $ 1.2515.
On FOREX, the euro started the week with a push to $ 1.1445 and yesterday retreated back and tested area $ 1.1300. EUR/USD is consolidating in the range below $ 1.1340. At the start of Wall Street, the euro failed to break back through 1.1360, which is the important level for the market in the current conditions. Intraday resistance is observed in the $ 1.1350-60 area. Support around $ 1.1300 looks really strong.
And finally, US consumer price index for November is the main data event of the day. The basic and core rates turned out to be exactly equal to the expected values of 2.2% for CPI and 0.0% for the November CPI. This means a slowdown in the rate of inflation from 2.5%. The report is unlikely to have a big impact on the expectations of the FOMC meeting in a week, since today it was practically ignored by the markets.
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