Last trading session review
On Friday, U.S. stocks retreated from record highs as concerns about a new outbreak of pneumonia continued to support the dollar and drag on the euro, while spot gold rose to its highest level in more than a week, hitting as high as around $1,584, recording weekly gains.
Fx: eur/usd at 1.0830; GBP/usd closed at 1.3046; Australian dollar/us dollar 0.6713; Usd/jpy 109.74; Usd/cad closed at 1.3252; Dollar/Swiss franc closed at 0.9820.
Commodities: spot gold closed at $1,583.80 an ounce; Comex gold closed at $1,586.40 an ounce; Spot silver at $17.72 / oz; Comex futures ended at $17.734 an ounce; Brent crude closed at $57.32 a barrel; NYMEX crude closed at $52.05 a barrel.
In the currency market
After trading at 1.0855 in New York, the euro fell again during the session to close around 1.0830, continuing its 1.04 percent decline for the week. From a technical perspective, the MACD green momentum column has slightly contracted, KDJ index low continued to decline, indicating that the short-term decline in the exchange rate may continue. The initial resistance on the upward side of the exchange rate is 1.0852, the further resistance is 1.0873, and the key resistance is 1.0884. The initial support for the decline of the exchange rate was 1.0819, further support was 1.0808, and more critical support was 1.0787.
GBP/USD: this session started at 1.3021 and was moderately higher during the session, ending around 1.3046 before rebounding 1.2 percent this week. Technically, the MACD red momentum column is steadily stretching, and the KDJ indicator is moving up into overbought territory, indicating that the exchange rate is expected to expand its recent rally. The initial resistance to the upward movement of the exchange rate is 1.3074, the further resistance is 1.3100, and the more critical resistance is 1.3137. The initial support for the downward trend of the exchange rate is located at 1.3011, further support is located at 1.2975, and more critical support is located at 1.2949.
Usd/jpy: the session opened at 109.76 and traded sideways before settling around 109.74, edging up 0.02% for the week. From the technical point of view, the MACD red kinetic energy column was basically flat, and the KDJ index turned down at a high level, indicating that the upward space of the exchange rate was temporarily limited. The initial resistance to the upward movement of the exchange rate was at 109.89, the further resistance was at 110.00, and the more critical resistance was at 110.10. The initial support for the decline of the exchange rate was 109.69, further support was 109.59, and more critical support was 109.48.
The stock market
U.S. stocks were little changed on Friday but generally rose slightly this week as Wall Street digested the latest batch of consumer data and corporate earnings. The dow fell 25.23 points, or about 0.1%, to 29,398.08. Earlier in the day, the dow was down more than 100 points. The s&p 500 rose just 0.2 percent to 3,380.16 but barely held on to its record closing high. The NASDAQ rose 0.2 percent to 9,731.18, a record close.
European stock markets closed mixed on Friday as investors monitored a new outbreak of pneumonia in China and a slew of corporate earnings. The European Stoxx 600 index closed slightly lower, with the direction of major stock markets and sectors unclear.
The bond market
Us Treasury yields fell last month after the Commerce Department said on Friday that clothing sales had suffered their biggest monthly drop since March 2009. The weak us retail data were enough to cause some jitters on Wall Street before the opening bell, with the yield on the 10-year Treasury note falling to 1.58 percent. The 30-year yield fell to 2.034%, while the two-year yield fell to 1.426%.
Spot gold rose slightly after opening at $1,575.18 an ounce in early Asian trading on Friday, but then quickly fell back to hit a session low of $1,572.95 before edging up from its lows. After the European open, gold remained low, hovering around $1, 575. Shortly before and after the U.S. market opened, gold briefly surged above $7 before continuing its volatile climb to a new session high of $1,584.70 before settling at $1,583.80.
COMEX gold for April delivery rose $7.60, or 0.48 percent, to $1,586.4 an ounce from the previous session.
U.S. WTI crude for March delivery closed up 63 cents, or 1.2 percent, at $52.05 a barrel on Friday, up 3.4 percent for the week. Brent crude for April delivery closed up 98 cents, or 1.7 percent, at $57.32 a barrel on Friday, up 5.2 percent on the week. A fresh look at the impact of the outbreak on oil demand and potential output cuts by major oil producers cheered bulls and helped oil prices record their first weekly gain in six weeks. U.S. WTI crude hit an intraday high of $52.34 a barrel, while Brent hit an intraday high of $57.53.