Last trading session review
In the wake of the outbreak, major U.S. stock indexes hit record highs on Thursday after the Chinese government announced it would cut import tariffs on some U.S. goods. Meanwhile, U.S. jobless claims fell to a nine-month low last week and the dollar again surged above 98.50, although spot gold rallied back above the 1560 mark.
On Friday, keep an eye on the U.S. non-farm payrolls report, the federal reserve’s semi-annual monetary policy report, fed governor Charles Quarles’ speech, the rba’s interest rate decision, China’s January trade account, and keep an eye on news related to the new coronavella.
Fx: eur/usd at 1.0982; GBP/usd closed at 1.2928; Australian dollar/us dollar 0.6728; Usd/jpy 109.99; Usd/cad closed at 1.3284; Dollar/Swiss franc closed at 0.9743.
Commodities: spot gold at $1566.41; Comex gold closed at $1570.0 an ounce; Spot silver at $17.81 an ounce; Comex settled at $17.818 an ounce; Brent closed at $54.93 a barrel; NYMEX crude closed at $50.95 a barrel.
In the currency market
The euro/dollar traded at 1.0994 in New York after retreating from pressure during the session and was last trading around 1.0978. From a technical perspective, the MACD green kinetic energy column is steadily stretching and the KDJ index is deep into the low level, indicating that the short-term downward momentum of the exchange rate is still being released. The initial resistance to the upward movement of the exchange rate is 1.1008, the further resistance is 1.1032, and the key resistance is 1.1053. The initial support for the decline of the exchange rate was 1.0962, further support was 1.0940, and more critical support was 1.0916.
GBP/usd: this session opened at 1.2959 and continued to fall throughout the session, ending trading around 1.2925. From a technical perspective, MACD green momentum is basically flat, KDJ indicator oversold area continued to decline, indicating that the recent downward pressure on the exchange rate is still large. The initial resistance to the upward movement of the exchange rate is 1.2983, the further resistance is 1.3034, and the more critical resistance is 1.3066. The initial support for the downward trend of the exchange rate is at 1.2900, further support is at 1.2868 and more critical support is at 1.2817.
Usd/jpy: the session opened at 109.88, up slightly during the session, and was last trading around 109.99. From a technical point of view, the MACD red momentum column continued to expand, KDJ index high continued to rise, indicating that the exchange rate rebound is expected to continue. The initial resistance to the upward movement of the exchange rate is 110.08, the further resistance is 110.17, and the more critical resistance is 110.33. The initial support for the decline of the exchange rate was 109.83, further support was 109.67, and more critical support was 109.58.
The stock market
Us stocks hit a record high on Thursday after China said it would halve tariffs on a range of US products. Strong corporate earnings and solid economic data also boosted major indexes. The dow jones industrial average rose 88.92 points, or 0.3 percent, to 29379.77. The s&p 500 rose 0.3 percent to 3345.78. The NASDAQ closed up 0.7 percent at 9,572.15. Boeing Co. led the Dow up 3.5%. Microsoft shares rose more than 1 percent, contributing to the rise. Communications services and technology were the best performers in the s&p 500, up more than 0.7 percent each.
European stocks rose on Thursday as earnings took center stage and fears of a coronavirus outbreak began to recede. The pan-European Stoxx 600 index closed up 0.45 percent, pulling back slightly from early gains. Banks jumped 2 percent, while construction and materials fell 0.5 percent.
Spot gold started at $1555.88 an ounce in Asian trading on Thursday morning, then fell choppy and then hit a fresh low of $1551.96 before the European market opened, before continuing to climb from that low. Spot gold accelerated after the European market opened and quickly broke through the $1,560 barrier. After the opening bell, the bulls continued to rally to a session high of $1,568.01 before gold stayed in a tight range around that level to close at $1,566.41.
COMEX gold for April delivery closed up $7.20, or 0.46 percent, at $1570.0 an ounce.
U.S. WTI crude for March delivery closed up 20 cents, or 0.4 percent, at $50.95 a barrel on Thursday. Brent crude for April delivery closed down 35 cents, or 0.6 percent, at $54.93 a barrel on Thursday. The development of the disease continues to threaten the performance of crude oil demand, while major oil producers are divided over how to expand production cuts, keeping prices under pressure overall. U.S. WTI crude hit an intraday high of $52.20 a barrel, while Brent hit an intraday low of $54.25.