Sentiment in Asia this morning was rather negative taking the negative cue from wall street’s close yesterday. On Thursday Republicans in the US Senate revealed the much awaited tax plan but the corporate tax cuts are not so iminent – and this left its toll on sentiment.
While the corporate tax cuts will likely go down to 20% from 35%, this change is only expected to come into effect in 2019. Markets struggled to digest this delay. The US Dollar closed lower yesterday with the US Dollar index (DXY), an index measuring the strength of the USD in relation to a basket of foreign currencies, closing at 94.53. This morning we’re still very much around the same levels.
Losses for the US Dollar were gains for the yellow metal as Gold reached out for highs of $1288.31 throughout yesteday’s session. So far this morning Gold has managed to hold on to much of its gains and has remained supported at $1284.01.
Realtimeforex.com tradertip expects Gold to ease to $1282/$1280 region while below $1286/$1289 however warns of the possibility of a premature rise to specific levels.
Earlier this morning we have a series of UK data ranging from Industrial Production to manufacturing and construction and UK will also report its trade balance. All data relates to Spetember. Later this afternoon we have University Of Michigan Sentiment for November.
