Market Brief: Pound, Bitcoin Rebound
Fawad Razaqzada November 25, 2019 8:36 AM
A summary of news and snapshot of moves ahead of the US session.
- Market update: At 13:30 GMT, GBP and USD were the strongest while EUR and NZD were among the weakest in major currencies. Stocks were higher and gold was lower.
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- GBP rose as UK Prime Minister Boris Johnson’s Conservative Party remained comfortably ahead of the Labour Party in the latest polls. Johnson, who unveiled his policy proposals on Sunday, is promising to hire 50,000 extra nurses for the NHS and a package of tax cuts for working people. The Tories are at least 10 percentage points ahead of Labour.
- Stocks rose in Asia and Europe, and US index futures traded higher on rising optimism over a phase one US-China trade deal. China said it will raise penalties on violations of intellectual property (IP) rights and make it easier to penalise those found guilty of stealing IP. Given that protecting IP is a priority for Washington, such moves by China are seen as positive developments in so far as trade resolution is concerned - hence, the market’s positive response. It remains to be seen whether the gains can be sustained though with investors becoming increasingly frustrated by promises which have not been backed by action.
- Bitcoin managed to rebound after tanking during Asian hours on concerns about a crackdown on cryptocurrency operations by China. The crypto currency was still holding below key resistance around the $7400 area.
- Today’s main company news: Uber will not be granted a new licence to operate in London. Transport for London (TfL) said the company is “not fit & proper” after repeated safety failures, after 14,000 trips had been made by different drivers to one shown on the app. Uber has 21 days to appeal.
- The economic calendar is quiet today. HERE is our week ahead outlook.
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