The US Dollar traded lower against other major currencies, with the US Dollar Index (USDX) declining by 0.53%, which is close to Monday’s low.
The Euro and the Mexican Peso (MXN) were some of the strongest currencies on Thursday.
The MXN traded stronger as the Mexican Central Bank hinted that inflation around the target of 3% in 2018 could require monetary policy action, which boosts analysts’ expectations of a rate hike in February.
Gold and oil moved up as the Dollar weakened.
The upward movement of gold was however limited amid higher Treasury yields.
US equity indices traded mixed with little movement compared to the end of day rate of the day before. Markets are concerned about higher interest rates increasing the cost of financing for companies.
Cryptocurrencies took another hit as India prohibited the use of cryptocurrencies for payments.
Facebook (NASDAQ:FB) announced that it banned all kind of advertising for cryptocurrencies and ICOs on its platform.
Bitcoin fell below $9000 and Ripple below one Dollar in Thursday’s trading.
On Friday the United Kingdom releases PMI Construction data.
The European Union publishes producer prices Producer Price Index (PPI) and Italy its Consumer Price Index (CPI).
From the US the release of the Non-Farm Payrolls (NFF) and other employment statistics is expected.
EUR/USD managed to get back up to the 1.25 territory in late Thursday trading.
While much of the relevant economic statistics in the US were better than expected, the Nonfarm Productivity was down by 0.1% (expected +1.1% / previous +3.0%).
On Friday key employment data from the US is expected with the publication of Non-Farm Payrolls (NFP), unemployment rat, average hourly earnings, average work week, the University of Michigan Consumer Sentiment survey and factory orders statistics.
Pivot:1.247Support:1.2471.2451.2425Resistance:1.2531.2531.2615Scenario 1:long positions above 1.2470 with targets at 1.2530 & 1.2560 in extension.Scenario 2:below 1.2470 look for further downside with 1.2450 & 1.2425 as targets.Comment:the RSI is supported by a rising trend line.
Gold (EUR)
Gold traded moderately higher on Thursday as the weak Dollar pushed Dollar denominated commodities up.
As the US Treasuries – which are also considered a safe-haven - yields hit 2.8%, the upward momentum of gold was only limited.
On Friday in the US key employment data, such as the NFP will be released, which could trigger further market moves.
Pivot:1337.5Support:1337.51334.51332Resistance:135213561361Scenario 1:long positions above 1337.50 with targets at 1352.00 & 1356.00 in extension.Scenario 2:below 1337.50 look for further downside with 1334.50 & 1332.00 as targets.Comment:the RSI broke above a bearish trend line.
WTI Oil
The weak US Dollar pushed oil higher for the second day in the row, essentially making up for the significant losses on Monday and Tuesday.
Now oil is again close to the previous week’s high, which marked a 3-year record.
Analysts from Goldman Sachs (NYSE:GS) reevaluated their previous target for Brent at $62 and are now expecting the price to rise over the course of the year.
On Friday the Baker Hughes Oil Rig Count will be released, showing the number of currently operating oil rigs in the States.
Pivot:65.13Support:65.1364.964.65Resistance:66.466.6567.45Scenario 1:long positions above 65.13 with targets at 66.40 & 66.65 in extension.Scenario 2:below 65.13 look for further downside with 64.90 & 64.65 as targets.Comment:the RSI is supported by a rising trend line.
US 500
US equity indices traded slightly lower during Thursday’s trading.
While the optimistic earning season and the weak Dollar supported the positive sentiment, markets are concerned about rising costs of financing, as 30 year US Treasuries hit the 3% mark.
EBay surged up by over 14% as revenues were better than expected and it announced to team up with a different payment provider than Paypal (-7.32%) in the coming years.
Amazon (NASDAQ:AMZN) was trading lower by 3.56% during regular trading hours but jumped in after-hours trading, as net profits were double of what was seen in the previous year.
On Friday among others Chevron (NYSE:CVX), Exxon (NYSE:XOM) and Merck (NYSE:MRK) are due to release their earnings data.
Pivot: 2837.5 Support: 2812.75 2805 2792 Resistance: 2837.5 2846 2855 Scenario 1: short positions below 2837.50 withtargets at 2812.75 & 2805.00 in extension. Scenario 2: above 2837.50 look for furtherupside with 2846.00 & 2855.00 as targets. Comment: the the RSI is mixed to bearish.