News & Analysis
Equity Markets – U.S markets continue to surge Dow Jones +228; Gold blasts above 1330; EURUSD – GBPUSD jump adding 150 plus pips
Today’s high impact news:
▸No high impact news to be released today/tonight.
U.S markets – continued their record-breaking run on Friday driven by better than expected earnings results. The Dow Jones added 228.46 – The S&P500 added 18.68 and the NADSAQ closed 49.28 higher. The S&P 500 is enjoying its best 10-day start to a year since 2003. In that time period, the index is up 4.2 percent and closing in on 2800. The Dow Jones is fast approaching 26,000. The US30 CFD that tracks the Dow Jones has added 1158 points this year! “There is optimism in the market,” but there is also uncertainty about this rally, said Cooper Abbott, chairman of Carillon Tower Advisers. That level of uncertainty can be good for the market because it “dampens expectations.” J.P. Morgan Chase, BlackRock and Wells Fargo all reported better-than-expected quarterly results. Oil closed 87 cents higher on Friday knocking back Thursday’s weaker end to the day. Price closing above $64 a barrel. European markets – finished higher on Friday with positive leads from Wall St. The FTSE added 15.70 – the DAX added 42.13 and the CAC closed 28.51 points higher. Autos were Europe’s top-performing sector Friday, closing up 1.24 percent, boosted by British multinational automotive firm GKN, which soared more than 26 percent after it rejected an acquisition proposal. German automakers Volkswagen and Porsche also posted solid gains. Puma shares slide after Kering decides to distribute 70 percent of its shares. The UK100 CFD index opened 22 points higher this morning making a new record high. The GER30 CFD index set an HL on Friday, price has opened higher this morning we’re watching 13256 as developing support level on the daily chart.
Forex – Friday produced some amazing moves, the EURUSD, GBPUSD and GOLD stole the show. The EUR surged to the JPY and USD, with the EURUSD moving to its highest level since late 2014. ECB policymakers said in minutes of the bank’s December meeting that they could revisit their communication stance in early 2018. Investors took that as a signal that the ECB will wind down its 2.55 trillion euro ($3.10 trillion) bond purchase scheme this year if Europe’s economy continues to hum along. The EURUSD closed 166 pips higher and the EURJPY closed 163 pips higher. The GBPUSD closed 192pips higher after a report that the Netherlands and Spain were open to a deal for Britain to remain as close as possible to the trading bloc. The USD plunging to three-month lows also help spur the buying. The AUDUSD recovered to close 22 pips higher and broke .7896 level to close above .79 for the first time since the 26th of September. The USD lost ground to the CAD and JPY. The USDCAD settled 61 pips lower after moving 40 pips higher. This morning buyers are active from 1.2432 level. We’re watching this level as a potential for support to form. Gold added $15 to move back above 1330 it’s higher level since September 17.
USDCAD – This morning we’re seeing buying developing with an HH set on set last week, this morning buyers look to be making a stand from 1.2432 level. This is setting up a possible HL, will buyers hold or are we going to see new lows after this pause?
Good trading from Eightcap.
Sources; CNBC. All times are AEDST
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