In other financial news this week, the EUR/USD currency pair has shown remarkable stability, staying steady above the 1.1400 level. This is the level that has been least appealing to investors. Tesla Inc. (TSLA) was one of the most volatile trading days on record. The shares opened strong, rising above $332, but then crashed in a disastrous 17% sell-off. As of our late afternoon session today, TSLA was down to less than $274.
On Monday, negotiators from the United States and China met in London to work on the terms of a possible trade agreement. The meeting was a significant step in the right direction, as the bipartisan negotiations continued into a second round of talks on Tuesday. In spite of the import of these comments, trading was volatile on Monday as investors positioned themselves following the surprising news.
During Monday’s trading session EUR/USD remained relatively calm throughout the day, trading above the 1.1400 mark for the majority of the day. Overnight, despite its relative stability, the currency pair could not draw in investors. Plenty were looking for more lucrative, fast moving opportunities in the industry.
On the other side of the oceans… In parallel with these central developments, all-important Australian confidence data are expected in coming days. One currency not looking so strong is the AUD/USD currency pair, which stays very strong above 0.6500 as US/China trade talks continue on… Underpinning this resilience is a fierce optimism among traders on the likely positive results of the ongoing negotiations.
As the US and China continue their discussions, market watchers remain vigilant for any indications that may influence currency valuations and stock prices. The continued volatility is a reminder that global economic forces are always changing, and that investors should be paying careful attention to dramatic changes in major international relationships.