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Equities higher on Friday, Russian news hits US trading – Europe higher after earnings; USD finishes the week on a high – EURUSD – GOLD lower; USDJPY breaks 4-day losing streak.

Feb 19, 2018 | Daily Market Outlook

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US markets – closed mainly higher on Friday, the Dow Jones closed 19.01 higher, the S&P500 added 1.02 and the NASDAQ closed lower losing 16.97 points. Gain where trimmed as news hit that that Robert Mueller indicted 13 Russian nationals for allegedly interfering with the 2016 U.S. presidential election. The S&P500 added 4.3 percent having its best weekly gain in five years. Bulls still need to recover a further 4.9 percent to cover losses seen in the selloff. U.S. Steel, meanwhile, surged 14.8 percent after the Commerce Department recommended imposing steep tariffs on foreign steel and aluminum producers. China has commented it would fight these tariffs if imposed. The US30 has started Monday stronger adding 56 points. We still see resistance in play from 23,325 – 25,430.

Oil – finished higher on Friday adding 27 cents. Buyer sentiment support by comments from OPEC members about the cartel’s output cuts also boosted sentiment. However, surging U.S. production is offsetting those efforts. U.S. crude output hit a record 10.27 million bpd last week. The daily show’s a high at $61.50, buyers are testing it this morning.

European markets – finished stronger on Friday as corporate earnings gave support to buyer sentiment. The FTSE closed higher by 59.89. The DAX added 105.79 and the CAC closed 59.06 higher. Vopak was the top performer Friday. The Dutch oil and chemical company said full-year results were lifted by a stronger-than-anticipated performance in the final three months of the year. Its shares were 13.7 percent higher.

Forex – Friday saw a rally on the USD as buyers moved out of risk. The USD snapped a 4-day losing streak to the JPY, closing 11 pips higher. Sellers did make a new weekly low before the fight back hitting 105.54. The AUDUSD & EURUSD saw decent losses on Friday. The A/$ dropped 41 pips after hitting .7988 and the E/$ lost 102 pips after hitting 1.2555 a new 2018 high. The EUR was mainly lower late Friday as it fell to the crosses and majors. The EURAUD fell by 70 pips despite AUD weakness. This gives you a good idea of the EUR board weakness last Friday. Gold fell to the USD on Friday losing $6.60 after running up to 1361. 1360 resistance is looking solid for sellers at this point.

EURUSD – looks to have set up a failed high with resistance reconfirming on Friday. Have buyers lost momentum? A break of Friday’s low could set up a new leg lower.

Good trading from Eightcap.

Sources; CNBC. All times are AEDST

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