Oil prices higher on averted tariff/Safe-haven sell-off following US-China deal /Pound tremendous gain following Brexit optimism

Dec 13,2019

Regain Capital

Overnight Reviews:

Gold: -0.32%

Silver: 0.40%

US Index: -0.40%

WTI Oil: 0.64%

NDX: 0.77%

Oil prices higher on averted tariff

The black commodity was able to break above its $59 handle, following optimism on the trade front after US President Trump sign a deal to avert the December 15 tariffs. Oil market sentiment remains on the upside adding on with previous OPEC+ meeting optimism, however, gains were limited by weaker demand growth forecast by the IEA.

Safe-haven sell-off following US-China deal

Safe-haven assets underwent large sell-off, with precious gold falling back to its $1,465 handle following optimism in trade war. US President Trump stated that a China deal is getting very close, while signing a deal to avert the December 15 tariffs to allow further trade negotiations. The bullish news boosted market risk appetite, causing investors to enter riskier markets.

Pound tremendous gain following Brexit optimism

UK election held on Thursday led to a largest intraday trading for the pound since the announcement of Brexit. Exit polls forecasting UK PM Johnson’s Conservative Party to win majority, eliminating Brexit risk as investors wait for the final results. The forecast itself allowed GBP/USD to rose to more than a year high while EUR/GBP fell to more than 3 years low.

Main Events Today GMT +8

01:40 CAD BOC Gov Poloz Speaks

21:30 USD Core Retail Sales m/m

21:30 USD Retail Sales m/m

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Oil prices higher on averted tariff/Safe-haven sell-off following US-China deal /Pound tremendous gain following Brexit optimism

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