All three US main indices snap 5-session streak

Dmitry Lukashov IFC Markets

Dollar strengthening decelerates on slower inflation

US stock market ended marginally lower on Friday. S&P 500 slipped 0.01% to 2596.23, closing 2.5% higher for the week. Dow Jones industrial average slid 0.02% to 23995.95. The Nasdaq lost 0.2% to 6971.48. The dollar strengthening slowed as data indicated inflation slowed to 1.9% in December from 2.2% in November: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.1% to 95.67 but is lower currently. Stock index futures point to lower openings today.

SP500 test descending channel 01/14/2019 Market Overview IFC Markets chart

DAX 30 loss smaller than other European indices

European stocks finished marginally higher on Friday. The EUR/USD continued falling while GBP/USD turned higher on reports of a likely Brexit delay with euro higher currently as Pound slips. The Stoxx Europe 600 Index inched up 0.1%, ending the week 1.7% higher. The DAX 30 lost 0.3% to 10887.46 led by auto-makers shares after reports Ford plans job custs and plant closures in Europe. France’s CAC 40 fell 0.5% and UK’s FTSE 100 slid 0.4% to 6918.18.

Hang Seng leads Asian indices losses

Asian stock indices are lower today as China reported weak trade data. Stock market in Japan is closed for a holiday while yen resumed its climb against the dolla . Chinese stocks are falling as Beijing reported slower exports: the Shanghai Composite Index is down 0.7% and Hong Kong’s Hang Seng Index is 1.6% lower. Australia’s All Ordinaries Index inched 0.02% lower despite the Australian dollar turn lower against the greenback.

Brent rally snaps

Brent futures prices are extending losses today. Prices ended lower on Friday: Brent for March settlement slid 2.0% to close at $60.48 a barrel Friday, rising 6% for the week.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.