January 8, 2020 Market opening

Affected by the latest news from Iran, Asia on Wednesday morning, safe-haven gold and yen as well as oil prices quickly pull up short – term. Spot gold broke through $1, 590 to hit a near seven-year high of $1, 598.20 an ounce. The dollar fell more than 60 points against the yen in the short term to a low of 107.81. WTI crude also continued to rise, extending its intraday gain to 4 percent to hit a fresh high of $65.48 a barrel since April last year.

The session focused on U.S. ADP employment data, federal reserve Brainard speech, and U.S. -Iran developments.

Summary of major economic data for January 7:

The US trade deficit fell 8.2 percent in November to $43.1bn, the lowest since October 2016 and the biggest drop since January 2019, it was announced on Tuesday. The deficit is expected to be $43.8bn, compared with $47.2bn previously. The US trade deficit fell to its lowest level in more than three years as imports fell further and exports rebounded, suggesting some stabilization in the US economy by the end of 2019, critics said.

The U.S. ISM non-manufacturing index for December, released on Tuesday, was 55.0. Anthony Nieves, chairman of the ISM’s non-manufacturing business survey committee, said non-manufacturing growth accelerated in December, with respondents positive about potential solutions to the trade situation and easing capacity constraints. However, respondents said they still faced headwinds in terms of labor resources.

Major currencies and commodities:

Fx: eur/usd closed at 1.1151; GBP/usd closed at 1.3127; Australian dollar/us dollar 0.6866; Usd/jpy 108.40; Usd/cad closed at 1.2999; Dollar/Swiss franc closed at 0.9701.

Commodities: spot gold at $1574.30 / oz; Comex gold closed at $1,574.3 an ounce; Spot silver at $18.41 an ounce; Comex settled at $18.393 an ounce; Brent closed at $68.27 / BBL; NYMEX crude closed at $62.70 a barrel.

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