Market Wrap: Stocks, Bonds, Commodities
US Wall Street’s major stock indicesdown on Thursday, slipped away from record highs as Traders digested new coronavirus developments and mixed corporate earnings.
The Dow Jones Industrial Average slipped 128.11 points (0.43%) to 29,423.31, the S&P 500 down 5.51 points (0.16%) to 3,373.94 and the Nasdaq Composite dropped 13.99 points (0.14%) to 9,711.97.
Regarding the U.S. economic data,Core CPI data m/m rose less than expected to 0.1% in January (0.2% estimated) from 0.2% in December. later today economists expect Core Retail sales m/m rise to 0.3% from 0.7% earlier.
Asian stock indicesinched up on Friday, on course to make the second straight week of gains, helped by hopes that governments will take action to soften the impact on china economies from the coronavirus.
MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.21% to 691.25, while Japan’s Nikkei slid 0.70%.
European stocks were slipped on Thursday, with the Stoxx Europe 50 Index down 0.20% to 3,846.74, Germany’s DAX flat to 13,745 and France’s CAC slid 0.19% to 6,093 and the U.K.’s FTSE 100 down1.10% to 7,452.
U.S. government-bond prices jumped as demand for haven assets grow. The benchmark U.S. 10-year Treasury yields down 1.96% to 1.605.
Yellow metal prices hit their highest levels in last 10 days on Thursday as haven buyers back to the gold amid a new spike in deaths and infected people reported by China from its Covid-19 epidemic.
Crude Oil prices were flat on Friday but are set for their first weekly gain in last six weeks on the assumption that major producers will agree on deeper output cuts to offset slowing demand in China.
Brent futures gained 3.3% to settle at $56.40 per barrel, while US West Texas Intermediate (WTI) crude gained 2.5% to settle at $51.70.
Market Wrap: Forex
Today, The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, up 0.05% to 99.000.
Today Japanese yen held gains against the dollar, as fresh worried about the scale of the coronavirus outbreak supported demand for safe-haven currencies.
The euro at multi-year lows versus the dollar as investors grow more pessimistic about the outlook in the euro zone before the release of gross domestic product data later on Friday.
the pound gain strength on Friday due to hopes that a British cabinet reshuffle will lead to more expansionary fiscal policy to support economic growth.
Other Commodity-linked currencies were broadly flat against the greenback. AUD/USD at 0.67180 and NZD/USD lower -0.05% to 0.64310.
EUR/USD Intraday:Downtrend continues
Our pivot point is at 1.08310
Preferable Price Action: Take short positions below pivot level with targets at 1.08152 & 1.08030in extension.
Alternative Price Action: Above pivot looks for further upside at 1.08501& 1.09635
Comment: The RSI indicator below 50 and MACD on the negative side. Moreover, the pair is trading below its 55MA and 20MA.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
GBP/USD Intraday: Trend upside
Our pivot point is at 1.30190
Preferable Price Action: Long positions above pivot with targets at 1.30592& 1.30720in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.29928 and 1.29699
Comment: The RSI indicatorabove the 50-level mark and pair above its 20MA and 55MA
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
JPY/USD Intraday:Intraday Resistance at 109.870
Our pivot point is at 109.870
Preferable Price Action:Long position above 109.870 with the target at 109.966 and 110.034 in extension
Alternative Price Action: The downside breakout of 109.870 would call for 109.740 and 109.665
Comment: Pair below its 20MA and 55MA and MACD in negative territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
AUD/USD Intraday: Intraday support at 0.67130
Our pivot point is at 0.67130
Preferable Price Action: Long positions above pivot with targets at 0.67300 & 0.67455 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.66937& 0.66796 as targets.
Comment: Pair near to its support area
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
CRUDEOIL Intraday:Take support near 50 level
Our pivot point is at 51.25
Preferable Price Action: Buy above 51.25 with targets at 51.74 and 51.97in extension.
Alternative Price Action: Below pivotssell Oil with 50.76&50.41 as targets.
Comment: Pair above its 55MA and RSI near 5o level.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
XAU/USD Intraday: Intraday support at 1573.24
Our pivot point is at 1573.24
Preferable Price Action: Further upside to 1576.75 &1578.54
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1570.20 and 1568.71
Comment: long and Short term trend upside.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
Dow jones Intraday:Upside Trend may continue
Our pivot point is at 29,394
Preferable Price Action: Take long positions above pivot with targets at 29,518&28,575in extension.
Alternative Price Action: Below 29,394 looks for further downside to 29,289& 29,196.
Comment: Pair is trading above its 20MA& 55MA and RSI near 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced