ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for November 27, 2019. This is not a trading advice. See details below:
FOREX
The Pound’s value is declining this Wednesday, as the latest opinion polls point at gains for Jeremy Corbyn’s Labour party, with a narrowing of the gap in the voting intentions for the two main parties in the December 12 general election. The risk here is of another hung parliament, potentially leading to a new Brexit extension and more uncertainty regarding the outcome of a process that has been damaging for the UK’s economy. Not to mention the Labour party’s election manifesto, with its references to nationalizations and increases in taxes; any enhanced chance of a Labour presence in government will represent downside risk for Sterling.
Ricardo Evangelista – Senior Analyst, ActivTrades
GOLD
Gold has rebounded again from the support level of $1,450, which is now gaining more importance. Indeed, if prices can hold the threshold of $1,445/1,450, the movement seen in the last two months could still be called as a correction. On the other hand, a clear breakdown of this support zone would open space for further decline, most likely marking a more significant inversion of the trend, after a very strong 2019 for bullion.
Carlo Alberto De Casa – Chief analyst, ActivTrades
OIL
In the last few trading days we have seen good volatility on oil, with prices falling below $55, before recovering the key level of $58. Prices are now consolidating at these levels, while the main trend remains positive as the general scenario remains overall “risk on”. Moreover, technically, the fact that prices are again above the key level of $58, is another positive element, confirming the recovery of momentum for oil prices.
Carlo Alberto De Casa – Chief analyst, ActivTrades
EUROPEAN SHARES
European markets opened mostly higher this morning as the risk-on mood, boosted by the last trade developments, continue despite tensions remaining in Hong Kong. While President Trump reaffirmed his will to protect Hong Kong protesters by stating he wanted democracy in the Southern China island, he also added Washington and Beijing were in the final throes of reaching a trade deal. This was confirmed after a senior White House official said the Chinese government “will come through with significant concessions on intellectual property protections” which is currently boosting market sentiment almost everywhere. Futures contracts on US indices are registering record highs following a positive trading session in Asia. Elsewhere in Europe, investors will be eyeing today’s important US data release with Q3 GDP, Core Durable Goods Orders as well as October Pending Home Sales which should bring further volatility to stocks in both Europe and the US.
Pierre Veyret– Technical analyst, ActivTrades