Stocks and high-beta currencies initially catch a slight bid after Lighthizer’s optimistic trade comments

High-beta currencies and US stocks came off early session lows after US Trade Representative Lighthizer said he expects the Trump-Xi meeting to be a success.  The FX market has been very quiet ahead of the G-20 and tight ranges have been firmly being in place.  The Australian dollar rebounded from the session lows and recaptured the 0.7300 handle against the US dollar following Lighthizer’s comments.  The bounce however was short-lived and tight range trading persists.

The Dow and S&P 500 opened down 0.3%, while the Nasdaq started down only 0.1%.  The tech sector benefited from strong earnings from HP Inc. WorkDay, and VMware.  Technology stocks have had 3 consecutive down months and will likely strongly react to the outcome at the G20.  If the trade war worsens, the tech sell-off could resume.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya