Welcome to this week’s Market Blast Fundamentals where we will look at WTI (US Oil), EURGBP, AUDNZD, EURUSD, USDCHF, and the Dow Jones Industrial Average (US 30). 

 

 

The Dow Jones Industrial Average reached an all-time high above 30,000 last week and, if you caught our Market Blast Video from the 16th of November we looked at the positive effects to the market with the possible appointment of Janet Yellen to the position of US Treasury Secretary.

Well, that happened and equities have climbed, with that, and with the good news about Coronavirus vaccines.

We have had a pullback this morning, probably from month-end profit-taking and here is your chance to “buy the dip” if we get more good news on Coronavirus vaccines or a US stimulus package.

The USD is still looking weaker against the other major currencies like EURUSD above $1.197 and USDCHF at 0.903 and we have a lot of economic news this week coming out of the US with Pending Home sales today, the Manufacturing and non-Manufacturing PMIs tomorrow and Thursday, 2 speeches by Jerome Powell, ADP Employment Change, and of course, the non-farm payrolls Friday.

As well, we have an Interest Rate Decision from the Reserve Bank of Australia tomorrow and we are seeing general AUD strength against most accept the NZD.

GBP is mixed but we are expecting news this week as the UK might be the first country to approve Coronavirus vaccines and we hope to see progress on Brexit talks.

Talks in OPEC are continuing today and, if they can agree on production cuts we should see the price of WTI and Brent Crude improving.

While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.

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AUD/USD keeping its head above 21DMA at 0.7673 for now

AUD/USD saw downside during Monday’s Asia Pacific and early European session, dropping momentarily as low as 0.7660. The pair broke below an uptrend linking the 28 December 2020 high with the 4, 11 and 15 January lows.

AUD/USD News

GBP/USD: Monday’s bullish pin bar keeps buyers hopeful

GBP/USD picks up bids around 1.3590 amid the initial Asian trading session on Tuesday. The Cable justifies its bounce off 21-day SMA and a bullish pin bar candlestick pattern on the daily chart. Monthly resistance line adds to the upside barriers.

GBP/USD News

XAU/USD fades recovery moves below $1,850, awaits fresh clues

Gold eases from the top of an immediate $10 trading range while declining to $1,837 at the start of Tuesday’s Asian session. The yellow metal took a U-turn from the lowest since December 01 the previous day as the US dollar stepped back after refreshing the one-month high.

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Stellar awaits a massive breakout but remains inside a no-trade zone

XLM has continued to trade sideways since we last reported about it. The digital asset remains locked inside a tightening range which will eventually burst. 

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US Dollar Index: Immediately to the upside comes 91.00

DXY extends the march north and already trades at shouting distance from the 91.00 barrier, or new 2021 highs.

US Dollar Index News

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