News & Analysis

Stocks traded mixed – Dow Jones 3-day streak – Europe lower DAX drops 86 points, Gold rallies; USDJPY hammered – EURUSD jumps back to 1.235050

Feb 14, 2018 | Daily Market Outlook

Upcoming high impact news:

▸00:30 USD CPI – Core CPI
▸00:30 USD Retails Sales – Core Retail Sales
▸02:30 OIL Crude Oil Inventories

US markets – continued higher on Tuesday after futures showed a weaker open. Markets fought back, the DOW closed 39.18 higher making it three positives closes in a row. The S&P500 closed 6.94 points higher and the NASDAQ closed 31.55 points higher. “Tomorrow will bring the most important CPI report in over 10 years, as rising inflation (which will cause higher interest rates) has become one of the biggest risks to this multi-year rally,” Tom Essaye, founder of The Sevens Report, said in a note Tuesday.

Oil – closed lower by 40 cents after running lower by 95 cents. Buyers took price back into its 58.85 support area. While this level continues we’re looking for buyers continue showing support. Traders should keep in mind tonight’s EIA report that may show further US inventory surprises renewing selling pressure.

European markets – finished lower on Tuesday, the FTSE lost 9.05 points, the DAX lost 86.27 points. A series of corporate earnings Tuesday yielded both positive and negative reactions on European trading floors throughout the session. Telenet shares fell on dividend concerns after the Belgian operator posted its 2017 results. U.K. consumer price inflation remained at 3 percent in January, the same level as in December.

Forex – saw a sharp gain in the Japanese Yen and a decline in the USD. The EURUSD made strong gains adding 64 pips. The GBPUSD added 50 pips support by higher than expected UK CPI data. The big story from last night was the charging Yen. The Bank of Japan committed to ongoing stimulus. This started the charge late Asian session, the JPY knocked all the majors hitting the USD the hardest. The USDJPY plummeted by 122 pips dropping back into the 107 handle. Selling has continued this morning price trading 35 pips lower looking to test yesterday’s low. Gold – added $6.60 yesterday, 1-hour resistance at 1329.95 has been beaten today price trading a further $4.60 higher.

Tonight’s US CPI data as mentioned above is looking very important to the health of the current counter-rally. The market broke due to interest rate fears, if tonight’s data comes in above expectations this could reignite fears and send stocks lower.  The data is due out at 00:30 AEDST.

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