News & Analysis

Equity Markets – fresh records in the US; USD recovery – EURUSD – GOLD at Jan lows; Oil charges above $63 a barrel

Jan 10, 2018 | Daily Market Outlook

Today’s high impact news:

▸ 20:30 Manufacturing Production
▸ 02:30 Crude Oil Inventories

U.S markets – closed at new records overnight, S&P500 has had its best start to a year since 1987. The Dow Jones closed 102.80 higher, the S&P500 closed 3.58 points higher and the NASDAQ added 6.19 points. The index is also enjoying its best start to a year since 1987. The S&P 500 is up 2.7 percent for the year, notching its biggest six-day gain to kick off a year since then. “It’s been a great start to the year. The momentum we saw in 2017 carried over into this year,” said Jim Davis, regional investment manager at U.S. Bank Wealth Management. Financial giants BlackRock, J.P. Morgan Chase and Wells Fargo are among the companies set to report quarterly results later this week. Oil continues its positive week surging to new weekly highs last night. Price jumped by 145 cents moving above $63 its highest point in more than three years.  European markets – moved higher last night the FTSE closed 34.51 points higher, 7701 confirming on the UK100 CFD as a support low. The DAX had a quieter session adding 17.81 points. 13346 seen as short-term support on the GER30 daily chart. Germany’s industrial production and exports were both stronger-than-anticipated in November, showing continued rising growth in Europe’s largest economy.

Forex – Tuesday saw a recovery in the USD, as it hit an 11-day high. Its main gains were made to the EUR and CAD. The EURUSD fell a further 29 pips. Taking it to a loss of 129 pips for the last three days. The GBPUSD snapped a three-day winning streak losing 88 pips. The AUDUSD traded in a mixed session but continued lower to a strengthening USD. Price settled 17 pips lower and sellers are in control in this morning’s trade. The JPY hit five-day high after BOJ trims buying in long-dated JGBs. Majors continued lower yesterday, AUDJPY lost 53 pips and the USDJPY hit weekly low’s after losing 45 pips. Price has retraced 50% of last week’s rally. The GBPJPY bounced off 152.40 this level could develop into short-term support. Gold continued lower to a stronger USD. Talks between North and South Korea didn’t help as a slightly more stable picture emerges from the Korean peninsula for now.

Oil – surged above three-year highs, OPEC-led output cuts, a dip in the U.S. rig count and expectations U.S. crude inventories fell for an eighth week supported prices.

Good trading from Eightcap.

Sources; CNBC.  All times are AEDST


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