Financial Markets Daily

In the currency market

Euro: EurUSD turned higher, closing 0.26% higher at 1.2144. On the technical front, the initial resistance to the upward movement of the exchange rate is at 1.2175, the further resistance is at 1.2206, and the key resistance is at 1.2236. The initial support is at 1.2113, the further support is at 1.2084, and the more critical support is at 1.2052.

Sterling: The pound rose against the DOLLAR for the first time in three days, up 0.75% at 1.3323. Technically, the initial resistance to the exchange rate upward is at 1.3410, further resistance is at 1.3504, and key resistance is at 1.3564. Initial support for the lower exchange rate is at 1.3257, further support is at 1.3196, and more critical support is at 1.3103.

Yen: USDJPY fell for the second day in a row, closing down 0.03% at 104.01. Technically, the initial resistance to the exchange rate upward is at 104.25, further resistance is at 104.47, and the key resistance is at 104.85. Initial support for the lower exchange rate is at 103.65, further support is at 103.28, and more critical support is at 103.06.

The stock market

In an attempt to break months of stalemate in negotiations, US lawmakers on Monday proposed splitting the COVID-19 rescue package into two separate votes to improve its chances of approval. The Dow Jones Industrial Average rose 279 points earlier in the day to an intraday high of 30,325, a record high for the market, boosted by news of a US COVID-19 vaccination programme and the prospect of a new bail-out package. But the high came under selling pressure, with the Dow losing more than 200 points in mid-session trading before turning lower. The Nasdaq Composite index remained up about 1%, narrowing to 0.5% in late trading. The Dow Closed down 184.80 points, or 0.62%, at 29861.55. The S&P 500 closed down 16.00 points, or 0.44%, at 3,647.49. The NASDAQ composite index closed up 62.20 points, or 0.50 per cent, at 12,440.07.

U.S. Stocks were mixed as The U.S. Congress nears agreement on a comprehensive spending bill for the fiscal year 2021. Tesla Motors is worth more than the nine largest automakers combined

At the start of the week, the focus remained on negotiations between Britain and the European Union over a post-Brexit trade deal, with European stocks closing higher on Monday, with the FTSE 100 index ending lower. The Pan-European Stoxx 600 index closed up 1.73 points, or 0.44%, at 391.85. The banking sector led the way, up 1.5%; Germany’s DAX30 index closed up 108.86 points, or 0.83%, at 13,223.16. The FTSE 100 closed down 14.92 points, or 0.23%, at 6,531.83; The CAC-40 index in France closed up 20.29 points, or 0.37%, at 5,527.84. In Europe, the Stoxx 50 index closed up 18.71 points, or 0.54%, at 3,504.55. Spain’s IBEX35 index closed up 79.90 points, or 0.99%, at 8,143.00. Italy’s FTSE MIB index closed up 57.57 points, or 0.27%, at 21,759.73.

Commodity markets

Spot gold closed at $1,827.20 an ounce in late U.S. trading, down 12.50 dollars, or 0.68 percent, after touching a high of $1,840.74 an ounce and a low of $1,818.73 an ounce. Spot gold rose 86 cents, or 0.05 percent, last week.

February gold futures ended down 0.6 percent at $1, 832.10 an ounce on COMEX.

Crude oil futures extended last week’s gains on Monday as mass vaccination campaigns against the coronavirus began in the US. However, as fears of a no-deal Brexit mounted, Opec cut its oil demand forecast again, limiting the upside for prices. U.S. WTI crude for January delivery closed up 42 cents, or 0.90 percent, at $46.99 a barrel at press time. Brent crude for February delivery ended up 32 cents, or 0.64 percent, at $50.29 a barrel. Last week, U.S. oil finished up 0.67 percent, its sixth straight weekly gain, while U.S. oil finished up 1.46 percent.

Leave a Reply

Your email address will not be published. Required fields are marked *