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31.10 - USD is trying to make peace with rates cut



American Fed decision is right in the middle of our attention today. After all, for the third time in a row Fed meetings are ending with the decision to cut interest rates for USD. This simply cannot be a good sign. And traders, understanding this, are dropping USD like hot potato causing its price against the basket of six major currencies only to go lower even more.

Cuts of American rates are sending signals all over the place. Japan, the economy of which has not been in the best of shape lately, shows signs of easing pressure. In today’s reports BoJ officials were hinting on the possibility of rates being cut in the nearest future, but for now monetary policies are kept steady. Of course this is good news, giving that JPY has not been going though the best of times and that we were waiting for the improvement or some good news.

In the meantime, Reuters is reporting that Beijing and Washington are ready to make another very important step in trade talks with China preparing to axe tariffs and American farm products to boost import. If this is going to be implemented, we are getting another milestone in trade talks and might be on the way to tirade war resolution, which is going to be a welcome change after a year and a half of trade war.

Other segments of the markets are pretty mixed. We can see that American stock market extends the falls from yesterday as the focus of traders shifts away from the segment. Apple are waiting for another boost as newest AirPods are expected to do very well in the upcoming holiday season. Tesla were riding the high after the earnings report, but alas! It ended and now there is the need to find another boost.

Commodities are rising. Even oil has found the ground under its feet, which is a welcome change after the falls that we have been seeing ever since the week started. Precious metals are also all in the earning zone.

Here is what markets look like today:

Topix added 0.1 percent.

Kospi grew 0.25 percent.

Shanghai Composite lost 0.45 percent.

Hang Seng from Hong Kong added 0.7 percent.

S&P 500 futures were barely changed.

Euro increased by 0.4 percent - $1.116.

Pound grew 0.4 percent - $1.2922.

Yen gained 0.1 percent – 108.68 per dollar.

Canadian dollar dropped 0.5 percent - $1.3157.

Apple slid just a little bit further - $243.26.

Facebook nudged lower 0.6 percent – $188.25.

Amazon grew 1 percent - $1779.99 per share.

Tesla dropped 0.4 percent - $315.01.

Google decreased 0.1 percent - $1261.29.

WTI recovered 0.15 percent - $55.14 per barrel.

Brent added 0.3 percent - $60.79 per barrel.

Gold added 0.2 percent - $1499.5 per ounce.

Silver increased 0.3 percent - $17.93 per ounce.

Platinum added 0.25 percent – $927.8.