Mixed headlines on the US-China trade talks and a likely deal overnight translated into a cautiously optimistic trading environment on the final trading day of the week.
The FX markets were left in a tizzy amid a lack of clarity on the trade developments and growing scepticism. Therefore, most majors stuck to tight trading ranges, as the US dollar consolidated its latest drop vs. its main rivals.
USD/JPY traded around a flat line near 108.60 despite a bounce in the Asian stocks from three-week lows while EUR/USD pair and GBP/USD stocked to their recovery gains, with the Fiber holding above 1.1050 while the latter keeps the 1.29 handle.
Markets gear up for a big day ahead, with global manufacturing sector activity data to dominate and throw fresh light on the state of the global economy.
The Euro area Markit Preliminary Manufacturing and Services PMI releases will start trickling in from 08:15 GMT, with the key German and Eurozone reports due at 08:30 GMT and 09:00 GMT respectively. The new UK flash Manufacturing and Services PMI readouts by Markit will be closely watched at 09:30 GMT. Meanwhile, the speech by the new ECB President Lagarde, due at 08:30 GMT, is expected to steal the show, as she is due to make her first policy speech at the European Banking Congress, in Frankfurt.
We have a busy NA session as well, with, the US Markit Preliminary Manufacturing and Services PMI data being published at 14:45 GMT, followed by the US Michigan Consumer Sentiment Index, scheduled at 15:00 GMT. In the American mid-morning, Baker Hughes oilfields services company will release the US Oil Rigs Count data at 18:00 GMT.
Despite an eventful Friday docket, the US-China trade-related developments will likely supersede and continue to direct the risk trends, as we wrap up a data-light but cautious-trading dominated week.
Oil takes the bids to $58.30, near the recently flashed two-month high of $58.70, by the press time. Receding calls of a stop in OPEC+ production cuts and geopolitical tension surrounding Iran have provided additional strength to the energy benchmark.
Following its first negative daily closing in the week, Gold prices cling to 100-day EMA while flashing $1,468 as a quote during Friday’s session. Despite challenges to the US-China trade deal and doubts over the global economy, the yellow metal recently dropped as the US dollar (USD) managed to lure risk-averse traders.