Last trading session review
The dollar surged to 98.33 on Wednesday after the U.S. Senate voted down articles of impeachment against President Donald Trump and the ADP jobs data was positive. Also, news of coronavirus drugs spurred a rally in risky assets, with U.S. stocks closing higher across the board overnight and spot gold remaining firm, ending above the 1550 mark.
On Thursday, focus on U.S. preliminary data, Dallas fed President Robert Kaplan and European central bank President Christine Lagarde.
Fx: eur/usd at 1.0997; GBP/usd closed at 1.2998; Australian dollar/us dollar 0.6745; Usd/jpy 109.80; Usd/cad closed at 1.3277; Dollar/Swiss franc closed at 0.9733.
Commodities: spot gold closed at $1,555.75 an ounce; Comex gold closed at $1562.80 an ounce; Spot silver at $17.58 an ounce; Comex at $17.602 an ounce; Brent closed at $55.28 / BBL; NYMEX crude closed at $50.75 a barrel.
In the currency market
The euro/dollar traded in a narrow range at 1.1005 in New York before closing around 1.0999. From a technical point of view, the MACD green momentum column stretched slightly and the KDJ index moved down into oversold territory, indicating that the short-term decline in the exchange rate may continue. The initial resistance to the upward movement of the exchange rate is 1.1033, the further resistance is 1.1068, and the key resistance is 1.1088. The initial support for the decline of the exchange rate was 1.10979, further support was 1.0959, and more critical support was 1.0924.
GBP/USD: this session opened at 1.2981, moderately higher during the session, and was last trading around 1.2993. Technically, the MACD green momentum column continued to expand, and the oversold KDJ indicator turned up, indicating a slight lack of near-term downward momentum in the exchange rate. The initial resistance to the upward movement of the exchange rate is 1.3062, the further resistance is 1.3123, and the more critical resistance is 1.3176. The initial support for the decline of the exchange rate is located at 1.2949, further support is located at 1.2896, and more critical support is located at 1.2835.
Usd/JPY: the session opened at 109.80 and fell slightly during the session before trading around 109.77. From a technical point of view, the MACD red momentum column steadily stretched, KDJ index high continued to rise, indicating that the exchange rate rebound momentum remains strong. The initial resistance to the upward movement of the exchange rate is 110.02, the further resistance is 110.21, and the more critical resistance is 110.56. The initial support for the decline of the exchange rate was 109.47, further support was 109.11, and the more critical support was 108.92.
The stock market
U.S. and European stocks: the standard & poor’s 500-stock index hit a record closing high on Wednesday as U.S. stocks rose for a third straight day on encouraging U.S. economic data and waning concerns about the financial impact of a coronavirus outbreak in China. The dow jones industrial average. DJI rose 483.22 points, or 1.68 percent, to 29,290.85. The s&p 500 gained 37.1 points, or 1.13 percent, to 3,334.69. The NASDAQ closed up 40.71 points, or 0.43 percent, at 9,508.68.
European stock markets closed higher on Wednesday, extending gains made earlier in the week, despite the outbreak of the coronavirus. The pan-European Stoxx 600 reversed early losses to close more than 1 percent higher, with automotive leading the way and only telecoms losing money.
International spot gold Wednesday morning opened at $1552.45 an ounce, then all the way up the volatility. Spot gold rose to a fresh high of $1,562.00 an ounce around the start of the European session, before falling sharply by $15 from its high to a fresh low of $1,546.90 an ounce. After that, the bulls moved in quickly, pushing gold higher and back closer to the $1,560 mark before settling in a tight range just below that level to close at $1,555.75 an ounce.
COMEX gold for April delivery closed up $7.30, or 0.47 percent, at $1,562.80 an ounce.
U.S. WTI crude for March delivery closed up $1.14, or 2.3 percent, at $50.75 a barrel on Wednesday. Brent crude for April delivery closed up $1.32, or 2.5 percent, at $55.28 a barrel on Wednesday. While the outbreak continues to weigh on the outlook for oil demand, China’s progress in containing the outbreak has begun to calm investment sentiment, while the possibility of further production cuts by major oil producers has also supported oil prices. U.S. WTI crude hit an intraday high of $51.88 a barrel, while Brent hit an intraday high of $56.46.