Fundamental analytics

Global market focus upon Trump and Xi Jinping negotiations

On Thursday, after three days of mini rally, US equity market ended the day in the red. This is quite expected given the start of the main event November last week-the beginning of the G20 summit in Argentina. Traders recorded profits and reduced the volume of open market positions. In addition, the development of the domestic political situation in the United States negatively affects market sentiment. However, the main event of the Friday trading session as well as the next Monday's trading is the start of the G-20 summit in Buenos Aires. Today in Asia, the major stock indices closed mixed, futures for US indices are traded deep in the red. Powell’s hints at less hawkish monetary policy, as well as the last FOMC «minutes» confirming those expectations continue to exert pressure upon USD dollar.

Yesterday USD dollar index tried to test the bottom resistance around 96.85 points. Today, the test of this zone continues, the resistance is located at the previous levels 96.85-96.95. It is characteristic that despite the fact that the FOREX currency market is trading with reduced activity today, there are good chances that the dollar may return to growth amid news of the failure of negotiations between the two leaders, the United States and China. Many experts do not believe in any breakthrough from this meeting and the conclusion of an agreement, but investors hope that the meeting will be able to somewhat reduce the degree of tension between the countries. Conversely, mitigating rhetoric could weaken the dollar’s position, which was under pressure for last two sessions.

Today is also interesting in another respect. Friday's trading session is somewhat special day and it is so-called triple market close. The day is unusual and very important. In addition to trading on Friday, November 30, global markets will close the trading week, and, most importantly, the trading month of November. In this regard, we expect volatile trading and the struggle of the parties for the closing price of the month / week.

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