US indices edge higher

Andrew Robinson MarketPulse

They say no news is good news and at the moment this appears to be true regarding the US-China trade negotiations. Wall Street edged higher yesterday, touching fresh record highs, despite no news of progress. Hong Kong is facing a standoff between police and students at a university. The UK appears to be favouring Boris Johnson in the run-up to the December election.

US30USD Daily Chart

Source: OANDA fxTrade

The US30 index touched a new record high yesterday but has opened in the red this morning
The 55-day moving average has risen to 27,020 while trendline support could be found near the 27,245 level
US housing starts and building permits data for October are due today, with starts probably rising 0.6% after a 9.4% decline in September.

DE30EUR Daily Chart

Source: OANDA fxTrade

The Germany30 index remains stuck in a narrow band that has been in place for almost two weeks
The 55-day moving average has risen to 12,609. The 23.6% Fibonacci retracement of the rally from October 3 to November 12 is at 12,960
The German Bundesbank’s monthly report warned that Q4 growth could stagnate, but with only a slight risk of a prolonged recession. (Note: The first estimate of Q3 growth was +0.1% q/q). There are no major data releases scheduled for today.

CN50USD Daily Chart

Source: OANDA fxTrade

The China50 index is struggling for traction despite a positive outlook for a trade deal as the ongoing Hong Kong unrest and the rising threat of violent intervention caps risk appetite
The index is sitting on the 55-day moving average at 13,883, which has supported prices on a closing basis since October 8
The Hong Kong government has ordered schools and colleges to be closed for a sixth day and has cautioned that District Council elections scheduled for this Sunday may be cancelled.

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.