Friday was marked by growing quotes on international stock markets. The Michigan consumer sentiment index in January outstripped forecasts and suddenly reached 98.2 points, renewing its 11-year maximum. All the other American macro-economic data also appeared to be positive. The month to month inflation rate in December decreased by 0.4% (this has become the maximum decline since December 2008). CPI yoy in December slipped to the lowest level since October 2009 and made up 0.8%. This is far lower than the Federal Reserve System target level of 2%. The data strengthen the expectations of the refinancing rate to be increased this year. Please note that though industrial output in December was comparatively weak, they met the target. Despite the upturn on Friday, the Dow Jones, the S&P 500 and the Nasdaq indices fell by 1.3, 1.2 and 1.5 percent respectively, drawing the weekly balance. Earlier, investors responded negatively to the decrease in retail sales and, as fairly, to GDP forecasts. American stock markets turnover was 4% above the 5-day average and made up 7.7 billion shares. Today American exchange markets are closed due to the American public holiday, Martin Luther King Day.



Today European stock indices continue to grow at the prospect of 500-550 billion euro emission which is likely to be announced on Thursday at a regular session of the European Central Bank. As exchange markets are closed and Thursday is still far ahead, the European Union observes a rather weak share price growth. Significant macroeconomic data are not expected to be published today. On Friday euro hit a new 11-year low as a result of the National Bank of Switzerland decision we had written about in our previous overview. Today the European currency is slightly moving up. We believe that until the next ECB meeting takes place, euro is likely to be traded sideways.



Nikkei has risen this morning together with other world stock indices. It was partly encouraged by the growth of the Japanese consumer confidence marker in December, which slightly outstripped forecasts. JPY/USD slipped in expectation of the Bank of Japan meeting (which is to take place January, 20-21). Investors anticipate the positive forecast of the core inflation rate for the current year, which is likely to decline from 1.7% predicted in October to 1.5%. Herewith, on Wednesday morning the Bank of Japan holds the final press conference and may declare the augmentation of emission and the raised GDP forecast. Analysts do not expect any particular macroeconomic data concerning Japan to be announced tomorrow.


Chinese officials will publish a report on GDP for the fourth quarter along with industrial production and retail sales data in December. In our estimation, forecasts are negative. There is a risk that the GDP growth will not meet the Chinese government’s expectations or even reaches its 24-year low. In this case, commodity futures prices may drop.


As we assumed in our previous overviews, oil and gold prices continued to grow. According to Baker Hughes, the oilfield services company, the number of US-based oil wells reduced by 55. This reduction is the second biggest within 24 years and has already been the sixth one in a row. We recall that the week earlier this number of oil wells decreased by 61. At the moment, there are 1366 operating oil wells, their quantity has been at its minimum since October 2013. We suppose that the rundown in drilling is absolutely logical. When oil price had fell by almost 60% within 6 months, the majority of oil fields became unprofitable. The dwindling number of wellsites may result in oil output declining and the price increasing. According to the U.S. Commodity Futures Trading Commission, the number of net long positions for WTI crude oil rose by 12% last week.




Gold hit its 4-month high at the prospect of the expected euro printing. The SPDR Gold Trust weekly reserves gained 1.9% and made up 730.9 tons. This has been the max growth since May 2010.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD: A tough barrier remains around 0.6800

AUD/USD: A tough barrier remains around 0.6800

AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.

AUD/USD News
EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.

EUR/USD News
Gold surrenders gains and drops to weekly lows near $2,550

Gold surrenders gains and drops to weekly lows near $2,550

Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.

Gold News
Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.

Read more
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting

UK CPI set to grow at stable 2.2% in August ahead of BoE meeting

The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures