Oversupply fears overshadowed US-China deal/Safe-haven plunged on geopolitical easing/Continues pressure on pound

Jan 14,2020

Regain Capital

Overnight Reviews:

Gold: -0.91%

Silver: -0.87%

US Index: 0.03%

WTI Oil: -1.78%

DOW 30: 1.16%

Oversupply fears overshadowed US-China deal

Despite upcoming signing of US-China Phase One trade deal, oil prices continues to slump. Recent announcement from President Trump on not needing oils from Middle East and unexpected buildup in US crude inventories had spiraled concerns of oversupply in the market. Nonetheless, oil price continues to be traded above its upward trendline.

Safe-haven plunged on geopolitical easing

Easing tensions from the Middle East and now the upcoming signing of US-China Phase One deal had boosted investors risk-on mode as they sell-off their safe-haven assets. Impact on the market was encouraged by clarity of details on the deal, where China will purchase more energy and goods from US; while US removes China off its currency manipulation tag.

Continues pressure on pound

After recent indications of further monetary policy loosening by the Bank of England (BoE), yesterday release of downbeat economic data from UK applied further selling pressure on the pound. Weakness in its economy, added on with fears of hard-Brexit convinced investors to sell-off the currency.

Main Events Today GMT +8

21:30 USD Core CPI m/m
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Oversupply fears overshadowed US-China deal/Safe-haven plunged on geopolitical easing/Continues pressure on pound

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