Last trading session review
The dollar retreated from a four-month high on Tuesday as risk appetite improved, with the s&p 500 and NASDAQ both hitting new intraday highs and spot gold edging down to $1,561.
On Wednesday, watch federal reserve chairman colin Powell’s congressional testimony, the New Zealand fed’s interest rate decision, Philadelphia fed President Richard Harker’s speech and MSc February quarterly index review.
Fx: eur/usd at 1.0913; GBP/usd closed at 1.2951; Australian dollar/us dollar 0.6714; Usd/jpy 109.78; Usd/cad closed at 1.3286; Dollar/Swiss franc closed at 0.9757.
Commodities: spot gold at $1567.51 / oz; Comex gold closed at $1,570.1 an ounce; Spot silver at $17.62 an ounce; Comex futures closed at $17.597 an ounce; Brent closed at $54.01 a barrel; NYMEX crude closed at $49.94 a barrel.
In the currency market
The euro/dollar traded at 1.0913 in New York, trading in a tight range, before closing around 1.0914. From a technical perspective, the MACD green momentum column has slightly contracted, KDJ index low gold cross up, indicating that the exchange rate short-term correction risk is rising. The initial resistance on the upward side of the exchange rate is 1.0930, the further resistance is 1.0945, and the key resistance is 1.0965. The initial support for the decline of the exchange rate was 1.0896, further support was 1.0876, and more critical support was 1.0861.
GBP/USD: this session opened at 1.2953 and fluctuated slightly during the session before trading around 1.2951. From the technical side, MACD green kinetic energy column moderate contraction, KDJ index low turn up, indicating that the exchange rate may usher in a wave of the recent correction. The initial resistance to the upward movement of the exchange rate is 1.2982, the further resistance is 1.3012, and the more critical resistance is 1.3057. The initial support for the decline of the exchange rate is located at 1.2908, further support is located at 1.2864, and more critical support is located at 1.2834.
Usd/jpy: this session opened at 109.79, the session was sideways consolidation, the last trading around 109.80. From a technical perspective, the MACD red momentum column is basically flat, KDJ index high down, indicating that the exchange rate trend is still not clear direction. The initial resistance to the upward movement of the exchange rate is 109.93, the further resistance is 110.06, and the more critical resistance is 110.17. The initial support for the decline of the exchange rate was 109.68, further support was 109.58, and more critical support was 109.44.
The stock market
Us and European stocks: the pan-European Stoxx 600 index briefly hit a record high in early trading on Tuesday, closing up 0.9 percent. Travel stocks rose 1.9% and led the way. Most sectors and all major stock markets continued to rise.
International spot gold opened at $1,571.98 an ounce in Asia on Tuesday morning before continuing to trade at $1,566. Spot gold traded in a tight range around that level after the European market opened, before rallying ahead of the U.S. market. Gold continued to rebound after the U.S. market opened to a new session high of $1,573.80 but then fell back quickly, falling nearly $12 in the short term and setting a new session low of $1,561.90 to close at $1,567.51.
COMEX gold for April delivery closed down $9.40, or 0.6 percent, at $1,570.1 an ounce.
U.S. WTI crude for March delivery closed up 37 cents, or 0.8 percent, at $49.94 a barrel on Tuesday. Brent crude for April delivery closed up 74 cents, or 1.4 percent, at $54.01 a barrel on Tuesday. The positive developments in the new coronavirus outbreak have stabilized risk sentiment and eased concerns about the outlook for oil demand. U.S. WTI crude hit an intraday high of $50.69 a barrel, while Brent hit an intraday high of $54.69.