Weekly Wrap-Up with GO Markets
By Deepta Bolaky
Recent weeks have shown political tensions mounting with turmoil in the Middle East, Europe, southern African countries and North Korea. The resignation of Lebanon’s Prime Minister Saad Hariri has created chaos in the region. He reportedly accused Iran and Lebanon of “meddling with Arab Affairs” and “spreading evil” in the region. The resignation is yet to be accepted by the President and has been put on hold which appears to have ease some tensions. In the Middle East, Saudi Arabia demands Qatar to sever ties with Iran.
In Europe, the markets are concerned about Germany’s political crisis and Brexit negotiations. Uncertainty surrounding Angela Merkel’s government is growing as she fails to form a coalition. The CDU/CSU is facing the toughest political challenge with no clear path.
In Zimbabwe, after a period of uncertainty following the arrest of Mugabe in an army coup, he finally stepped down (For more information: “Mugabe Steps Down by Klavs Valters” https://www.gomarkets.com.au/category/articles/).
After an initial drop on Monday, Gold rose amidst geopolitical tensions and dollar weakness. Buoyant week for Ethereum as it has reached a new record high and is currently trading around the $410 range. There is no clear indicator behind the rally in Ethereum, but it could be because compared to other cryptocurrencies, transactions in Ethereum are much more.
Source: GO Markets MT4
Investor sentiment is mixed with the US tax reforms as even though there is some progress, there is still long way to go. On the data front, even though existing home sales came out way better than expected, a disappointing US Durable goods caused the US Dollar to plummet against other major currencies.
However, the Thanksgiving speech by Trump ended on a promising note on tax reforms.
US Dollar Index
Source: GO Markets MT4
Brexit negotiations and political uncertainty are still of concern. However, the dollar weakness helped the EUR and GBP jump higher. In Britain, “a fatter cheque” to negotiate the Brexit talks enabled the Pound to strengthen.
Governor Lowe hinted for a rate hike during his speech which sets the AUD on a recovery path.
|Thursday, 23rd November 2017|
Indicative Index Dividends
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