News & Analysis

U.S Indices volatile – Michael Flynn Report; USD tumbles; Oil breaks back above $58.00

Dec 4, 2017 | Daily Market Outlook

Today’s high impact news:

20:30 GBP Construction PMI

U.S indices closed lower, after a report that Michael Flynn was directed by President Trump to talk to Russians. The Dow Jones closed 40 points lower after losing 350 points at one stage. The S&P500 closed 5.36 points lower and the NASDAQ finished 26.39 points in the red. ABC News reported that Flynn, the former national security adviser, would testify that he was directed to make contact with Russians during the presidential campaign in 2016. Flynn pleaded guilty to lying to the FBI about his post-election contacts with Russia’s ambassador to the U.S. ABC said later in an updated report that Flynn will say Trump asked him to make contact with Russia “initially as a way to work together to fight ISIS in Syria.” There will be more to come on this issue. Tax reform was another factor on Friday night, Senate Republicans had delayed voting on their tax bill Thursday. The setback concerned a fiscal “trigger” that forced lawmakers to patch up the plan only hours before a planned final vote. But the Senate showed signs of progress on coming to an agreement on a tax measure. Republican Senators Steve Daines, Jeff Flake and Ron Johnson — three of the last GOP holdouts on the bill — said they would support the measure, increasing the likelihood of it passing. European shares finished lower on Friday after futures gave up gains mainly due to U.S influences. The FTSE made new weekly lows, closing 26.18 points in the red. The DAX lost 162.49 points to close back below 13,000.

The Flynn report and tax reform delays pushed the USD lower on Friday night. Positive Canadian data combined with a weaker USD to send the USDCAD lower by 211 pips. Friday’s night’s session eclipsed four days of gains. The GBP broke a three-day winning streak to the USD and JPY as it took a breather on Friday. The GBPJPY has opened higher this morning but continues to find resistance at 152.40 level. The EUR traded lower on Friday to the USD and other majors. The EURUSD did recover late in the session to finish off lows. The AUD finished the week on a stronger note to the USD and JPY, the AUDUSD broke a 5-day losing streak to close 45 pips higher. The RBA meets tomorrow rates are expected to remain on hold. Gold snapped a 2-day losing streak to finish $6.50 higher. Sellers have forced a gap lower this morning, price is sitting around Friday’s open. Oil added 96 cents, OPEC’s continued supply cuts the main driver. Resistance continues to halt buyers at $58.93.

USDCAD – was trashed losing 4-days of gains in a session. Price is sitting between two key points at the moment. Will we see buyers reconfirm this area?

US30 – traded in a 400 point range on Friday, influences set up a wild night of trade. 24,328 resistance looked firm until this morning. Bulls have forced a break out with a higher gap on this morning’s open. Will we see resistance become support?

Good trading from Eightcap.

Sources; Reuters, CNBC

* 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