Positive U.S. nonfarm data on Friday spurred the dollar to its fifth straight day of gains, with weekly gains of more than 1.3 percent, the biggest weekly percentage gain in more than two years, while equity markets returned to caution ahead of the weekend. Gold remained firm despite the good non-farm payrolls report, closing around 1570 as concerns about the economic slowdown caused by the outbreak of a new coronavirus and lower global interest rates overshadowed strong U.S. economic data.
Fx: eur/usd at 1.0944; GBP/usd closed at 1.2891; Australian dollar/usd closed at 0.6672; Usd/jpy 109.72; Usd/cad closed at 1.3308; Dollar/Swiss franc closed at 0.9777.
Commodities: spot gold at $1570.00 / oz; Comex gold closed at $1,573.40 an ounce; Spot silver at $17.67 an ounce; Comex futures ended at $17.692 an ounce; Brent closed at $54.47 a barrel; NYMEX crude closed at $50.32 a barrel.
In the currency market
In New York, the euro ended the session at 1.0956, down 1.34% on the week after a choppy session. From a technical point of view, the MACD green momentum column continues to expand, the KDJ index has sunk deep into the low, indicating that the exchange rate may go lower in the near future. The initial resistance to the upward movement of the exchange rate is 1.0974, the further resistance is 1.1002, and the key resistance is 1.1018. The initial support for the downward trend of the exchange rate is 1.0930, further support is 1.0913, and more critical support is 1.0885.
Sterling/dollar: the session opened at 1.2935 and continued to fall during the session, ending around 1.2891, down 2.33% for the week. From a technical point of view, the MACD green momentum column is steadily stretching, KDJ indicator oversold area continues to decline, indicating that the short-term decline of the exchange rate may continue. The initial resistance to the upward movement of the exchange rate is 1.2938, the further resistance is 1.2987, and the more critical resistance is 1.3015. The initial support for the decline of the exchange rate is located at 1.2861, further support is located at 1.2833, and more critical support is located at 1.2785.
Usd/jpy: the session opened at 109.71 and traded sideways before closing around 109.72, up 1.24% on the week. From a technical point of view, the MACD red kinetic energy column began to appear, the KDJ indicator continued to move higher, indicating that the exchange rate regained rebound momentum. The initial resistance to the upward movement of the exchange rate is 110.01, the further resistance is 110.27, and the more critical resistance is 110.52. The initial support for the decline of the exchange rate is at 109.51, further support is at 109.26, and more critical support is at 109.00.
The stock market
U.S. stocks fell on Friday as concerns about the impact of the coronavirus on China’s economy overshadowed stronger-than-expected U.S. jobs data. The dow closed down 277.26 points, or nearly 1%, at 29,102.51. The s&p 500 fell 0.5 percent to 3,327.71. The NASDAQ composite index also fell 0.5% to 9,520.51. The four-day winning streak for major stock indexes came to an abrupt end. Still, stocks posted strong gains this week despite Friday’s losses.
European stocks fell on Friday as investors focused on the latest developments in the coronavirus outbreak and corporate news. The pan-European Stoxx 600 index fell 0.32 percent, led by a more than 2 percent drop in basic resources. Telecoms, Banks, and utilities bucked the trend. Germany’s DAX closed down 59.73 points, or 0.44 percent, at 13,515.09. The FTSE 100 closed down 39.89 points, or 0.53%, at 7,464.90. France’s CAC-40 index closed down 8.43 points, or 0.14 percent, at 6,029.75.
International spot gold opened at $1,565.98 an ounce on Friday morning in Asia, then stayed in a tight range. Spot gold rebounded slightly in early trading in Europe, but the rally soon subsided to a session low of $1,560.90 an ounce. After the opening bell, the bulls started to move in, with gold rising $13 from its low to a fresh session high of $1,573.90 before retreating from its high but quickly recovering from its low to close at $1,570.00.
COMEX gold for April delivery closed up $3.40, or 0.22 percent, at $1,573.40 an ounce.
U.S. WTI crude for March delivery closed down 63 cents, or 1.2 percent, at $50.32 a barrel on Friday, down 2.4 percent for the week. Brent crude for April delivery closed down 46 cents, or 0.8 percent, at $54.47 a barrel on Friday, down 3.8 percent for the week. The non-farm payrolls data failed to offset the economic impact of the outbreak, so the outlook for oil demand remains challenging, leading to five straight weeks of declines. U.S. WTI crude hit an intraday low of $50.09 a barrel, while Brent hit an intraday low of $54.21.