Investors to Focus on upcoming G-20 Meeting
- Over the weekend global leaders and central bank governors from 19 countries and the European Union will meet for a G-20 Summit in Japan starting on Friday and will continue until Saturday (June 28 -29);
- Traders and investors will be keeping a close eye on a potential meeting between U.S. President Donald Trump and Chinese President Xi Jinping for fresh signals on the direction of the trade war;
- Monday morning Asian opening session will set the tone for European and American markets Monday;
What traders will be looking for before the start of Monday’s Asian trading session?
- Sings of progress on US-China trade talks should support risk assets such as stocks and oil prices; while haven assets such as gold and the Japanese YEN may come under pressure;
- If no progress will be the outcome safe haven assets such as gold and the Japanese YEN will continue to be in demand and risk assets such as stocks and oil may come under pressure;
The Monday Asian opening bell to set the tone for the start of trading next week. CFD traders looking to capture the potential high price action at the start of Monday’s Asian session should start preparing for price action across the FX, Commodities and stock markets ahead of Monday’s Asian; European and American opening sessions.
Charts
Gold price (daily chart) trending higher on lower US dollar interest rate prospects, global trade war concerns current price 1411.70; a break above 1445 opens up potential for a test of the 1490's, otherwise a failure to hold above 1350 opens up a move lower to re-test the 1320 support;
Silver trending higher (daily chart); current price 15.30; a break above 15.64 opens up further upside potential towards 16.67 / 16.95; otherwise a failure to break above the 15.64 resistance opens up 14.70;
Crude oil (CL) higher on reduced US crude oil inventories; price advanced +9.5% last 5 days; resistance 60.50 , current price 58.90, downside 53.50;
USD/JPY in multi-month downtrend; however signs of trend reversal indicated; recent demand for safety in the Japan YEN and increased prospects that the USD will weaken on US interest rate cuts has supported a stronger YEN over the previous months; however, RSI indicator is warning of a potential downtrend reversal higher; current price 107.47; potential upside seen at 108.70; while downside near the 105.35 support;
UK FTSE upside remains provided 7249 support can hold; current price 7346, recent higher commodities and Oil prices helping to support the UK FTSE 100 index;
MIB seen losing upside momentum; after hitting resistance at 21390; current price 21035; downside support at 20,990 - 20,490; upside seen limited as long as 21390 resistance holds; however a break above resistance opens up 21,887 - 22163.
SP500 upside momentum weakening; current price 2926.50; provided price can hold above the 2875 support a retest of the recent highs near 2961 cannot be ruled out;
Source: FXGM / Bloomberg