Financial market daily

Last trading session review

On Wednesday (Feb. 19) by China will be more stimulus measures to boost to investor risk appetite, overnight the s&p 500 and nasdaq closing high, the dollar rose to a high of nearly three years, beauty is refers to the highest reached 99.73 level, the yen fell to a low for nine months, spot gold above the 1600 mark for the continuous lift, closed above 1610.

Thursday’s focus will be on the U.S. first call, the Philadelphia fed’s manufacturing index, the conference board’s monthly leading indicator rate and the minutes of the European central bank meeting.

Fx: eur/usd at 1.0806; GBP/usd closed at 1.2918; Australian dollar/us dollar at 0.6673; Dollar/yen at 111.35; Usd/cad closed at 1.3220; Dollar/Swiss franc closed at 0.9839.

Commodities: spot gold at $1,611.23 / oz; Comex gold closed at $1,611.8 an ounce; Spot silver at $18.41 an ounce; Comex futures closed at $18.311 an ounce; Brent closed at $59.12 / BBL; NYMEX crude closed at $53.29 a barrel.

In the currency market

The euro/dollar last traded at 1.0791 in New York, recovering slightly during the session, and was last trading around 1.0806. From a technical point of view, MACD green momentum column is still shrinking, KDJ index low gold cross up, indicating that the exchange rate short-term correction risk has increased. The initial resistance on the upward side of the exchange rate is 1.0816, the further resistance is 1.0829, and the key resistance is 1.0847. The initial support for the decline of the exchange rate was 1.0786, further support was 1.0769, and more critical support was 1.0756.

GBP/usd: this session opened at 1.2954 and was moderately lower during the session before trading around 1.2923. From a technical point of view, MACD green kinetic energy column appeared slightly, KDJ index pointing below the Central Line, indicating that the recent downward momentum of the exchange rate began to release. The initial resistance to the upward movement of the exchange rate is 1.2991, the further resistance is 1.3065, and the more critical resistance is 1.3107. The initial support for the decline of the exchange rate is located at 1.2874, further support is located at 1.2833, and more critical support is located at 1.2758.

Usd/jpy: the session opened at 110.71 and gained strongly during the session. It was last trading around 111.33. From a technical perspective, the MACD red kinetic energy column significantly stretched, KDJ index high gold fork up, suggesting that the exchange rate is expected to regain the upward boost. The initial resistance to the upward movement of the exchange rate is at 112.01, the further resistance is at 112.67, and the more critical resistance is at 113.76. The initial support for the decline of the exchange rate was at 110.26, further support was at 109.18, and the more critical support was at 108.51.

The stock market

Us and European stocks: European markets closed higher on Wednesday as investors watched the spread of the new coronavirus and the latest economic data. The pan-European Stoxx 600 index closed up about 0.8 percent after hitting a record high earlier in the session. Technology stocks led the way, gaining 1.4 percent, with all sectors and major exchanges trading in positive territory.

The s&p 500 and NASDAQ rose to record highs on Wednesday, with technology stocks doing well as investors continued to weigh the impact of the coronavirus on the global economy. The s&p 500 closed up 0.5 percent at 3,386.15, breaking through an all-time high of 3,385.09, while the NASDAQ climbed nearly 0.9 percent to 9,817.18. Over the same period, the dow jones industrial average gained 115.84 points, or 0.4%, to close at 29,348.03.

The bond market

On Wednesday, the 10-year yield was little changed at about 1.5619%, while the 30-year yield was unchanged at about 2.0031%.

Commodity markets

International spot gold opened at $1,601.20 an ounce on Wednesday morning in Asia and soon hit a session low of $1,599.30, maintaining a tight trading range ahead of the European open. Gold accelerated in early trading in Europe and briefly broke through the $1,610 barrier before quickly retreating sharply from its high to just above $1,600. However, around the start of the session, bulls again sounded the call for the attack, and gold continued to rally from its lows, with a strong late rally and a fresh session high of $1,612.80 before closing at $1,611.23.

COMEX gold for April delivery closed up $8.20, or 0.5 percent, at $1,611.8 an ounce.

U.S. WTI crude for March delivery closed up $1.24, or 2.4 percent, at $53.29 a barrel on Wednesday. Brent crude for April delivery closed up $1.37, or 2.4 percent, at $59.12 a barrel on Wednesday. U.S. sanctions on subsidiaries of the Russian oil giant added to supply concerns and eased the risk of an outbreak, giving the demand side a boost that allowed oil prices to close near three-week highs. U.S. WTI crude hit an intraday high of $53.49 a barrel, while Brent hit an intraday high of $59.40.

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