News & Analysis

GO Daily News – 16th January 2018

January 16, 2018

GO Daily News – 16th January 2018

 
OVERNIGHT

Top US Diplomats are being summoned by a growing number of nations in the wake of Trump’s comments on immigration.

China escalates crackdown on digital currencies and warns of the risks associated with cryptocurrencies.

Commodities stole the show yesterday as forex was somewhat subdued. Oil continues on its bullish momentum which is backed by the OPEC and Russia’s productions cuts and reports of diminished stockpiles. However, high oil prices could be an incentive for the US Shale Producers to pump and start drilling activities which is a matter of concern as it mitigates the impact of the cuts. As of writing, it is currently trading at $64.60.

USOUSD (Hourly)

Source: GO Markets MT4
Gold edged higher on the US Dollar weakness. It is at its highest since 4 months and currently trading in the range of $1,341.
XAUUSD (Weekly)
Source: GO Markets MT4
Source: Bloomberg, TradingFloor.com, WSJ.com, CNBC


FOREX AND CRYPTO NEWS

The US Dollar stays weak compared to major currencies. The surge in Pound was amongst one of the biggest gainer and is currently trading at a range of 1.3797 at the time of writing which is the highest since the post-Brexit talks.

GBPUSD (Weekly)

Source: GO Markets MT4

The hawkish tone of the ECB minutes set the Euro on a rally reinforcing the markers that the EU is also on the path towards normalization . Despite the markets pricing a heightened expectations of the FED ADDING 25BPS rate hike, the US Dollar is struggling to find a support level. This is so because the investors see the ECB minutes’ hawkish tone as an incentive to switch to European countries.

The Euro is also being supported by calming political mayhem in Germany. An agreement to begin formal talks has been secured and even though the Grand Coalition is not a done deal yet, the preliminary agreement gives a sense of the direction of the new government.

Source: AFR, SMH, CNBC, BBG, WSJ, CNN, Bloomberg, TradingFloor.com, The Australian, Reuters


LOOKING AHEAD
Overall, quiet day on the economic calendar today. In the Asian session, Motor Vehicles Sales will be the key event.
View the full economic calendar here.

Wednesday, 17th January 2017
Indicative Index Dividends
Dividends are in Points
ASX200WS30US500US2000NDX100CAC40STOXX50
0.10900.0180000
ESP35ITA40FTSE100DAX30HK50JP225INDIA50
0000000.491

*Dividends are in points
Source: Bloomberg, TradingFloor.com, Reuters

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