View Single Post
Old 19-02-2021, 15:48
HFblogNews's Avatar
HFblogNews HFblogNews is offline
Level V Lasers Member
Join Date: Jun 2015
Posts: 1,156
Default Re: - Market Analysis and News.

Date : 19th February 2021.

US Open – Dollar, Oil & Gold Pressured; Equities higher.

The Dollar has softened for a second consecutive day, despite US Treasury yields perking up, although remaining off trend highs seen earlier in the week. Global stock markets have continued to exhibit a sputtering price action in the face of historically stretched valuations and the recent spike in yields. In the commodity realm, oil prices have corrected while base metals have remained buoyant, with nickel and particularly Copper, for instance, posting fresh major trend highs.

The USDIndex posted a three-day low at 90.19, finding some support at the S2 level, which marks a little over a two-thirds retrace of the gains that were seen on Tuesday and Wednesday. EURUSD concurrently rose above 1.2100 for the first time since Wednesday, to stall at R2 1.2140. USDJPY dropped for a third straight day, posting a three-day low below S2 105.30. The Yen traded softer against most other currencies. Cable lifted above 1.4000 for the first time since April 2018, while the Pound traded softer against the Euro, correcting after rising against the common currency on each day over the last week, which produced an 11-month peak yesterday.

There was unusual divergence among the dollar bloc, which correlated with the divergence between rising base metal prices and a concurrent fall in oil prices, with the Australian Dollar outperforming the main currencies while the Canadian Dollar underperformed. This saw the AUDCAD cross lift by over 0.7% in pegging a 32-month high at 0.9915. AUDUSD, meanwhile, surged 1% in making a 35-month high at 0.7843, while AUDJPY rallied into 26-month high territory. USDCAD ebbed comparatively moderately, to a three-day low at 1.2632, while the Canadian Dollar weakened against the Euro and Yen, among other currencies.

Weaker oil prices affected the Loonie and other oil correlating currencies. Front-month WTI oil futures dove over 2.5% in posting a one-week low as USOIL touched $58.57. USOil is down over 5% from the 13-month high that was seen yesterday at $62.26. Bitcoin continued to hold firm on dips, aided by Elon Musk asserting that bitcoin “is simply a less dumb form of liquidity than cash.” Gold, which spiked to 7-month lows during the Asian session at $1760.58, has since recovered over $1770.00 but is down for a seventh consecutive day, losing over 4%.

US equity futures have extended higher to post small gains with the USA30 up 0.1%, the USA500 0.4% firmer, and the USA100 0.5% higher. European bourses are in the green with the GER30 rallying 0.5% while the UK100 lags and is only 0.1% higher.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Stuart Cowell
HeadMarket Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Reply With Quote