News & Analysis
Equity markets finished the week in the black; USDCAD surge – AUD plunge; Oil jumps above $62; G20 – FED – BOE busy week of data coming up.
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US markets – closed higher on Friday, but the S&P500 and Dow Jones made weekly losses. The S&P500 lost 1.2 percent on the week and the Dow Jones fell by 1.5 percent for the week. Trade turmoil continues to test investor sentiment. Tariffs on steel and aluminium imports are expected to come into effect in the coming weeks after Trump signed two declarations last week. “The market is still vulnerable to headlines, particularly with regard to trade and any retaliation,” said Quincy Krosby, chief market strategist at Prudential Financial. We’re “waiting for a reaction from the European Union and reaction from the Chinese in terms retaliatory responses.” The Dow Jones finished 72.85 higher the S&P500 added 4.68 and the NASDAQ edged higher by 0.25 pts. Traders 24,970 continues to show short-term resistance from the daily chart.
Oil – rallied on Friday USOUSD increasing by 108 cents to close back above $62.00. Price has broken out of a wedge pattern. We’d like to see a 61.58 hold as a low for a seller test to continue to show buyer demand.
European markets – finished higher on Friday, the DAX added 44.02. The FTSE added 24.38 and the CAC closed 15.49 points higher. Britain’s Nex Group surged to the top of the European benchmark after the company said it had received an approach from one of the world’s largest exchange groups, CME Group. Eurozone consumer prices grew less than expected in February. The bloc saw inflation at 0.2 percent month-on-month and 1.1 percent year-on-year. Oil and gas was the strongest performing industry, with the sector closing up 1.46 percent on the back of a sharp rise in oil prices. The UK100 daily chart has formed a lower high with resistance at 7165. The GER30 daily chart show’s resistance from 12,400.
Forex – the USD charged knocking the NZD and AUD sharply lower. The AUDUSD finished 90 pips lower. Sellers really took to the A/$ knocking 168 pips off its value in two sessions. The USDCAD continued to drive adding 50 pips closing in on 1.3100. The USDJPY lost 36 pips but sellers failed to hold lows. Consolidation continues to develop. The Japanese Yen continued to push risk majors lower on Friday. The AUDJPY being the hardest hit losing 120 pips. Gold spent most of Friday fighting from 1314. Buyers did hold a $6 rally at one point before USD strength sent price lower, sellers ended the session with a win as price closed just over $2 lower. Sellers are continuing to test support lows this morning.
This week presents a busy week data wise, G20 meetings start today and run tomorrow. Thursday the FED meets. The market is expecting a rise to 1.75%. Traders will be looking to the FOMC press conference and Statement for future direction. Capping off super Thursday the Bank of England meets, Monetary Policy Summary and official bank rates. The market is looking for a hold at .50%
Good trading from Eightcap.
Sources; CNBC. All times are AEDST
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