Markets are for a risk-on mood
Stocks
Chinese indices jumped to 13-month highs. The China A50 added almost 9% for the week as part of the last rally. The S&P500 gained 0.2% at the close of trading session on Wednesday, but index futures are losing ground at the beginning of trading in Europe, reflecting the wary mood of market participants before important Friday data.
EURUSD rebounds from levels near 1.1200. The EUR growth on Thursday supported by an unexpected improvement of PMI estimates in the services sector for the eurozone countries, although during the previous months these publications over and over again became an unpleasant surprise for the euro. In turn, data from the United States caused disappointment, showing a decline in the growth impulse of the largest global economy: ADP showed private sector growth by 129K, worse than the expected level at 184K, and Non-Manufacturing ISM instead of growth from 59.7 to 58.1 declined to 8-month low at 56.1. At the moment, EURUSD trades at 1.1240 with the nearest important resistance level at 1.13, and local support levels are located far below, in the area of 1.07.
GBPUSD
The British pound is growing thanks to Brexit news. GBPUSD is trading at 1.3170, offsetting the decline a week ago after the country's legislators rejected the option to exit without a deal. May and the opposition leader Corbin are looking for ways to compromise and intend to ask the EU for a longer postponement. Nevertheless, representatives of the European Union are increasingly insistently urging not to give a further delay, since this does not lead to any progress in the negotiations.
Brent
Brent crude stopped its growth. The sharp increase of US oil reserves at the same time with the new weekly production record of 12.2 million barrels/day was bad news for oil, not allowing Brent to consolidate above the 200-day average and stopping its growth in one step from $70. After failing to take important levels, a corrective pullback may well occur.
Gold
Gold was in the list of instruments that received short-term support. The precious metal cost is around 1290 from the end of last week. On the intraday charts, we see an increase in purchases from the area of 1285. The weakening of the dollar during recent days is an additional supporting factor. In the case of growth, the levels of 1300 (an important level) and 1308 (MA (50)) can become the short-term goal of a growth impulse.
The cost of Bitcoin for the past day has updated highs since November, exceeding at some point the level of $5300. The 200-day moving average passes through this level. Apparently, many investors in Bitcoin focus on technical analysis to a greater extent than on the news background, so overcoming it from the bottom up can be a significant signal for market participants and will support further purchases. The next buyers target now is the level of $6200, around which the market consolidated from September to November.
Author
Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.
