Oil gains limited by trade tensions/Safe-haven struggles near demand zone/Pound strength in place

Dec 10,2019

Regain Capital

Overnight Reviews:

Gold: 0.08%

Silver: 0.22%

US Index: -0.03%

WTI Oil: -0.40%

NDX: -0.41%

Oil gains limited by trade tensions

After gaining almost 7% last week, the crude oil found pressure near its 60 handle, while currently struggling near its 59 handle. The hike in oil prices were supported by OPEC+ optimism after the oil cartel signaled deeper production cut towards the year of 2020, however, with ongoing trade uncertainties, investors are still waiting for clearer clarification for a bullish breakout.

Safe-haven struggles near demand zone

Precious gold is still holding strong above its demand zone near 1,460 handle, while waiting for further trade signals in the market. Uncertainties continue to grow as the new round of tariffs are set to take effect on December 15. If US President Trump provide the green light for tariff, future trade negotiations will easily be jeopardized.

Pound strength in place

Confidence surrounding the pound sterling remained high, as UK election draws closer on December 12. With only 3 more days until the results are released, majority polls are bias towards a Conservative win. Securing a majority will allow PM Johnson to ratify his Brexit deal through the Parliament and deliver Brexit by January 31.

Main Events Today GMT +8

06:05 AUD RBA Gov Lowe Speaks

18:00 EUR German ZEW Economic Sentiment

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Oil gains limited by trade tensions/Safe-haven struggles near demand zone/Pound strength in place

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