Global stocks rise as markets await Trump’s speech
The sterling declined today as the Office of National Statistics (ONS) released the country’s jobs numbers for September. The numbers showed that the unemployment rate declined from the previous 3.9% to 3.8%. The employment change average for the past three months declined by 58k, which was better than the expected decline of 94k. Still, this was the worst number since the summer of 2015. In the same period, the country’s average weekly earnings dropped from 3.7% to 3.6%. Without bonuses, wages declined from the previous 3.8% to 3.6%. The number of vacancies in the economy dropped by 11k to 814k. The labour market has been resilient even as the country’s economy has remained under pressure.
Global stocks rose today as the market waited for a speech by Donald Trump. He will be addressing economists and business leaders at the Economic Club of New York. The most important thing the market will be looking at will be his statement on trade. This is because the US remained silent, even as China announced a deal to start lowering tariffs. This was interpreted to mean that the US was cautious about the deal. It also raised concerns that a deal may still be a long way off. In the past few months, Trump has been under pressure as the Democrats continue their impeachment inquiry. In the United States, Dow futures rose by 25 units while in Europe, the Stoxx index rose by 15 points.
The euro declined today after some mixed data from Europe. In Germany, ZEW released its economic sentiment data for November. The number showed that sentiment declined to -2.1. This was better than the consensus estimates of -13.2. In October, the sentiment data declined to -22.8. The current conditions survey showed that the sentiment declined to -24.7, which was lower than the consensus estimates of -22.0. This data came a few days after the country’s government council of economic advisors revised the economic growth forecast for this year and next year.
The EUR/USD pair continued the downward trend as the market waited for a statement by Trump. The pair reached a low of 1.1010, which was the lowest level since October 15. On the four-hour chart, the pair is trading slightly above the lower line of Bollinger Bands. The RSI is slightly above the oversold level of 30 while the momentum indicator is below the 100 level. The pair may continue to decline to move below the 1.1000 level.
The GBP/USD pair soared yesterday after Nigel Farage gave Boris Johnson a boost in the upcoming election. Today, the pair declined to an intraday low of 1.2815. The pair recovered somewhat and moved to a high of 1.2834. On the hourly chart, the pair is trading between the 23.6% and 38.2% Fibonacci Retracement level. The pair is slightly below the 14-day and 28-day moving averages. The Force Index has moved below the neutral line. The pair may remain along the current levels ahead of Trump’s speech.
The USD/CHF pair rose today ahead of Trump’s speech in New York. The pair moved upwards from yesterday’s low of 0.9928 to a high of 0.9965. On the hourly chart, the price is along an important support. The price is along the upper line of the Bollinger Bands while the RSI has moved from a low of 28 to 65. The momentum indicator has risen to above the 100 level. The pair may continue moving upwards to test the previous resistance level of 0.9975.