Wall Street weaker, pressured by tech sector

Andrew Robinson MarketPulse

The Friday rebound on Wall Street proved fleeting as selling restarted yesterday, led by the tech sector amid concerns about earnings reports. Gold topped the dollar as the go-to safe haven, while Brexit stalemate and Italy budget concerns capped European bourses.

US30USD Daily Chart

Source: Oanda fxTrade

The US30 index closed lower yesterday as concerns over tech sector earnings and disappointing data weighed. The index did not reach last week’s lows however, and has started positively today
The index is still holding above the 200-day moving average at 25,136, and has yet to test the 55-week moving average at 24,812
US Sep retail sales missed estimates yesterday. Today we see industrial production data for Sep, which is expected to slow to +0.3% m/m from +0.4%. Another disappointment would pile additional pressure on the index

DE30EUR Daily Chart

Source: Oanda fxTrade

The Germany30 index rose for a second straight day yesterday, defying the downward pressure on Wall Street
The index remains above the 200-week moving average at 11,473 and the positive start for US index futures suggests this will continue to provide support
ECB’s Draghi sees underlying inflation hovering around 1%, confident it will move toward target. Italy approved deficit-boosting budget yesterday. Now awaits the EU’s response

XAUUSD Daily Chart

Source: Oanda fxTrade

Gold touched its highest in more than 2-1/2 months yesterday as a softer US dollar helped its status as a safe haven
The metal is testing the 100-day moving average at 1,228. A sustained breach of that would bring Fibonacci resistance at 1,239 in to play
It’s not just a weak dollar and safe haven buying that is boosting gold. Consumer demand out of India for the festive and wedding season is also picking up

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.