Markets steady at start of holiday week

 

Holiday-mode

With most markets closing for Christmas on Wednesday, there isn’t much to report for today’s Asian session. US indices held onto Friday’s closing levels with a small incremental rally, but not enough to push to record levels. Today’s advance meant that the US30 index has climbed for 10 consecutive day, a feat last achieved in July 2017.

US30USD Daily Chart

Source: OANDA fxTrade

China to scale back tariffs from start of next year

Xinhua News in China has reported that China will start to shave its import tariffs from January 1. The initial tariff reduction will affect some 859 products ranging from avocados and orange juice to wood and paper products, IT products and certain raw materials used in the manufacturing of pharmaceuticals. These products will be granted preferential tariff rates.

Meanwhile US President Trump tweeted Friday that he’d had “a very good talk” with China’s Xi about the trade deal. He added that China had already started large-scale purchases of agricultural products and more.

A US-centric calendar

The rest of the world seems to be in celebration-mode already as the data calendar is only populated by North American data. US durable goods probably rose 1.9% in November, a faster pace than October’s +0.5% while new home sales for the same month are seen falling 0.8% m/m, worse than the previous month’s 0.7% decline. The only other data comes from Canada’s October GDP growth which is seen rising 0.1%, the same pace as the previous month.

The full MarketPulse data calendar can be viewed at https://www.marketpulse.com/economic-events/

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.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.