Cash flows before the start of the EU session: risk off, investors are cautious

20.11.2019 / 08:24

Rating:

The record series was broken yesterday in the US and earlier today in Asia. Although we couldn't talk about records right there. Either way, the unison indices were recording new daily highs from the positive effect of US interest cuts and optimism over the trade war. Giving a 3-month buffer to Huawei raised expectations of a positive resolution to the conflict, but recent news rather reiterates the pang of uncertainty. Shortly before the end of the US session, the US Senate passed a bill to support protesters in Hong Kong. Just a few hours later, upon recognizing the Chinese, they immediately called the US consul and were now pushing for a repeal of the law.

Coming to China on the Hong Kong issue, the US is trying out Xi's patience, which would ruin any expectations of reaching any Phase 1. And Trump threatens to raise tariffs if this is the deal this time around. be avoided.

Investors are beginning to get back on the bench, watching the increasingly tense dribble between the US and China. This was seen yesterday. Smart money moved faster this time around negative news from risky assets to more defensive ones.

With the deterioration of sentiment today, we will expect a more lenient mood for risk, with early indications of European indices pointing to a slightly shakier start at the start of the European session. Cash flows will look for a direction for gold, franc and yen, with all three asset protections reporting increases at this stage. The tide is felt with oil and the US dollar. Money also prefers bonds, with yields on the 10-year US $ 1.80% at the expense of a price increase, which is a risk off move.

Trader Martin Nikolov

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.

WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.

Varchev Finance

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Cash flows before the start of the EU session: risk off, investors are cautious

London

Universal numbers