Early-day news concerning the US-side efforts to ease trade discussions, up for November, joined speculations of the UK PM’s efforts to get the snap election passed through the House, may exerted downside pressure on the market’s risk tone.
Also questioning the bulls is increasing odds of the impeachment of United States’ (US) President Donald Trump as the House is up for voting on further investigation.
The US Dollar is on its recovery after the week-start loss while safe-havens like Japanese Yen stay on the back foot. Moving on, the British Pound and the Euro follows the overall mild weakness against the greenback ahead of the key vote on the United Kingdom’s snap election motion.
It’s worth mentioning that a lack of major change in Japan’s inflation statistics and comments from Japanese diplomats failed to offer any strong direction to markets while the US 10-year treasury yields remain mostly unchanged around 1.85%.
The European session remains data-light, while the second-tier data from the US, comprising Pending Home Sales and Consumer Confidence, coupled with another Parliamentary drama in the UK, could entertain traders during the NA session.
Alternatively, rising odds of the US President’s impeachment and political pessimism surrounding Hong Kong may renew risk aversion should the present trade/Brexit optimism falter.
Oil prices on both sides of the Atlantic are flashing red despite the renewed optimism over US-China trade negotiations. As of writing, Brent oil is trading at $61.22 per barrel, while, a barrel of WTI is changing hands at $55.72.
Gold has tumbled all the way back below the $1,500 round level as a strong equity market on Monday weighed on gold prices and the optimism about the completion of the first phase of the trade deal weighed on the yellow metal.