It's been a big 24 hours!
Where to start! Let's kick off with UK politics, the conservatives won a massive majority increasing their seats in the House of Commons by 47 seats. Some of the opposition candidates have already resigned and the country can now move on with Brexit. GBP/USD shot up 2.71% as the Ipsos Mori exit poll announced that the Conservatives had won a majority and this morning cable trades at 1.3425.
Elsewhere, over in the US, it seems a phase one trade deal has been signed between the US and China. Equities moved higher and gold sold off on the news. The S&P made a new all-time high and the Nikkei 225 closed 2.55% higher as risk-on mode was in full swing.
Gold trades just under $1470/oz at the start of the EU session and considering the risk tone it seems to have held up pretty well at the moment. Obviously this could all change in the EU session but the main support to watch is $1445.82/oz.
WTI pushed higher off the back of the trade war news and this morning is testing $60/bbl once again. The level has been tested 3 times already and maybe this could be the catalyst it needs to hold above the psychological point.
Coppers progress was halted at $2.80/lb as the markets had been pushing pretty hard into the announcement. Over the last two weeks, the red metal is 5.4% higher and many traders were looking forward to this deal being signed off.
Today we are looking out for business inventories, retail sales from the US, Baker Hughes rig count, CTFC futures data and comments from ECB's de Guindos and Fed's Williams.