Jul 01, 2019
Major Events – Trade Relief, OPEC and NFP
This week, at the G-20 Summit in Japan, the meeting between President Donald Trump and Chinese President Xi Jinping went exceptionally well. As a result, the trade talks have resumed and are moving ahead with high optimism. For now, the US has agreed not to tax more Chinese products and as a result of this, the financial markets have reacted positively. The major trading package that has been impacted includes gold, whose price has now dropped as a result of less market fear, while the price of crude oil has increased in response to economic optimism. Other companies who will benefit from the positive trade talks include Apple and Alibaba. This morning, the Chinese market also advanced by 2 percent. With the US dollar strengthening, it is recommended to trade the Australian dollar (AUD) versus other currencies. This currency has been advancing against other currencies as a result of the trade talks, which has prompted positive sentiment in the markets. This includes currencies such as the JPY, NZD, CHF and others.
In other financial news, OPEC will be having their semi-annual meeting, which will take place in Vienna, Austria today and tomorrow. With this major crude oil event taking place, analysts are expecting OPEC members and Russia to extend the cut of production to 1.2 million barrels a day. If OPEC reports any number above this, this could positively impact the oil price.
Meanwhile, on Friday this week, the US NFP (nonfarm payroll) will be published. The report last month disappointed and with the last big drop, the US needs to create more jobs in order to maintain the positive momentum. The main asset to trade related to the US NFP report is the USD.