News & Analysis

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

Feb 15, 2018 | Daily Market Outlook

Upcoming high impact news:

▸20:30 GBP Retail Sales m/m
▸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

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