Stocks push higher in holiday markets

Andrew Robinson MarketPulse

US indices rebound from weak Friday close

The rally on Wall Street continues as indices pushed to new record levels on Friday but retreated into the close on Friday. Markets had started positively this morning though, and look set to extend the recent bull-run.

Currencies were mixed with the US dollar index (DXY), the measure of the dollar’s value against six major currencies, on the defensive for a sixth straight session and dropping 0.85%.

The dollar’s weakness meant that most currencies benefitted, with EUR/USD gaining 0.14% to 1.1192, GBP/USD up 0.16% to 1.3107 and AUD/USD rising 0.13% to 0.6992. USD/JPY slid 0.12% to 109.32, the second daily decline in a row. The 55-day moving average at 108.927 could be the next possible support point. That moving average has supported prices on a closing basis since October 4.

USD/JPY Daily Chart

Source: OANDA fxTrade

A surprise winner year-to-date

With one more trading session of the year to come, it’s time to start looking at the best- and worst-performing currencies of the year. Against the US dollar, the best performing G-10 currency was the Canadian dollar, gaining more than 4% while the British pound came second with an advance of almost 3%, according to Bloomberg calculations. At the other end of the table, two Scandinavian currencies under-performed, with the Swedish krona bottom and the Danish krone second-last.

Among Asian currencies, the Thai baht leapt ahead with gains of almost 8% while the South Korean won propped up the table.

German retail sales unlikely to jolt markets

As you might expect as the year comes to a close, the data calendar is light on content today. For Europe, German retail sales are the only item on tap, and they’re expected to show mild annual growth of 0.9% in November, up from 0.8% in October.

For the US session, the goods trade balance is seen widening to $68.75 billion in November from $66.53 billion the previous month, while pending home sales for the same month probably rose 5.8% y/y from +4.4% in October, according to the latest survey of economists. December’s Chicago PMI is expected to jump to 47.9 this month from 46.3 last month. To complete the session, the Dallas Fed manufacturing business index is expected to improve to +1.5 in December from -1.3 last month.

Author

Andrew Robinson

MarketPulse

A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentar

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

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 climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

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.