News & Analysis

Stocks further recovery – Dow Jones 5-row; USD continues lower – EURUSD hits 1.2500 – NZDUSD breaks above .7400

Feb 15, 2018 | Market Updates

Upcoming high impact news:

Ôû©20:30 GBP Retail Sales m/m
Ôû©00:30 USD Building Permits

US markets – rallied for a fifth day in a row on Thursday, the Dow Jones added 306.88. The S&P500 added 32.57 and the NASDAQ closed 112.82 points higher. But Wall Street seems to be learning to live with higher rates. Stock futures traded higher despite the 10-year Treasury note yield hitting a new four-year high before the bell. On Wednesday, stocks and bond yields rose together. The chart below shows the percentage still to go to retrace the current correction.

Oil – rallied overnight adding 76 cents to close above $61. It was far from smooth sailing for buyers as sellers did test 90 cents lower during the London session. Prices were supported by But prices were supported by the weaker dollar and comments from Saudi Arabia over a deal to withhold production.$61.32 has developed as a high, traders should be watching this level for a breakout or high confirmation. Price is trading slightly lower this morning.

European markets – finished in the black last night, markets held gains in spite of mixed corporate earnings. The FTSE added 20 points. The DAX edged 7 points higher and the CAC closed 57.26 points higher. Airbus surged over 9 percent after the continent’s biggest aerospace firm beat profit and earnings expectations. Its shares were more than 10 percent higher on the news. London-listed ConvaTec jumped 7.36 percent, after posting profit and revenue for 2017 that beat analyst estimates.

Forex – the JPY show rolled on, what looked like weakening bears returned with fresh enthusiasm. The USDJPY plunged for a 3rd day losing a further 90 pips. Sellers getting close to taking price back to 105 handle! The EUR and AUD returned to the red closing lower the JPY. The GBP faired the best recouping loses into the LON session. Bears won out as it closed 17 pips lower. The USD continues to find no love as the majors marched higher. The EURUSD jumped by 60 pips hitting 1.2500, Jan levels. The AUDUSD held above .7900 after taking a dip post-Aussie employment data which did little to spur buyers on. The Data showed an increase in the employment change and a 5.5% hold on unemployment.

Gold finished had a much quieter session than yesterday. Buyers tested 1357 but settled $3.50 higher at $1348.50.

NZDUSD – marched back to .7400 last night testing February closing highs. If the USD continues its current momentum there’s a good chance we could see new 2018 highs for the Kiwi.

Good trading from Eightcap.

Sources; CNBC. All times are AEDST

* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.

In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.

Follow Us