US futures pare gains on weak earnings from retailers

US futures rose today as traders remained optimistic that a trade deal between the US and China would be sealed. Analysts from bond investment company, PIMCO, told CNBC that they expected a deal to be signed before Christmas this year. Dow and S&P continued the rallying mode by gaining 40+ and 6+ points respectively. Boeing was a major winner ahead of market open after the company announced new orders of 50 737-max at the Dubai air show. Its stock rose by more than 1% in the premarket. Home Depot stock fell in aftermarket trading as investors reacted to a weak guidance. The company made $27.22 billion in the quarter, which was lower than the expected $27.53 billion. Same store sales rose by 3.6%, which was below the expected 4.7%. Shares of Kohls also tanked by more than 11%. Meanwhile, housing starts rose to 1.314 million in October from 1.266 million in September. Building permits rose from 1.39 million to 1.46 million. 

The sterling declined today after the Confederation of British Industry (CBI) released orders numbers for November. The numbers showed that orders rose in the month from near decade-low levels. This happened after for a no-deal Brexit increased. Orders rose to -27 from October’s -37 which was more than the consensus estimates of -31. In a statement, the CBI warned that the manufacturing sector continued to face multiple internal and external factors such as the ongoing trade wars between the US and China and between South Korea and Japan. The data came a day after Boris Johnson and Jeremy Corbyn delivered speeches to the CBI, where they expressed divergent visions. Corbyn maintained that his administration would raise some taxes and encourage nationalization while Johnson pledged to cut taxes.

The Australian dollar rose during the European session after declining in the Asian session. This was in reaction to minutes from the Australian central bank. The minutes started with focus on the global economy. Members said that trading partners were going through a challenging period even though their unemployment rate has remained tight. In the domestic economy, members said that the economy had started to improve since its low point in the second half of the year. They attributed this growth to improved government spending and increased exports. They warned that the slow domestic consumption was a concern that could strain the economy. On housing, members were impressed on the improving conditions in Sydney and Melbourne but they expressed concerns about Perth and Darwin.

EUR/USD

The EUR/USD pair was relatively unchanged after the market received building permits and housing starts data. The pair is trading at 1.1080, which is where it started the day at. The pair’s price is above the 14-day and 28-day moving averages. The two lines of Stochastic Oscillator has been on a downward trend. The average directional movement index too has been on a downward trend. The pair may remain in this range.

GBP/USD

The GBP/USD pair declined to a low of 1.2926 from an intraday high of 1.2970. On the 30-minute chart, the price is below the 28-day and 14-day moving averages. The RSI has moved downwards to a low of 40 while the money flow index has also declined. The MFI is a relative strength index that factors in volume. The pair may move lower after finding significant resistance at the current levels.

AUD/USD

The AUD/USD pair rose in the European session after struggling in the American session. The pair is now trading at 0.6820, which is higher than the intraday low of 0.6770. This was the lowest level since October 14. The price is also slightly below the 61.8% Fibonacci Retracement level. The price is slightly below the upper line of the Bollinger Bands while the RSI has been on an upward trend. The Bulls Power has also been on an upward trend. The pair may remain at the current levels ahead of PBOC rates decision tomorrow.