News & Analysis

GO Daily News – 19th January 2018

January 22, 2018

GO Daily News – 19 January 2018

By Deepta Bolaky

Market Recap

Concerns over tensions in the White House and political uncertainties in Germany have made investors tensed and reluctant to take risks. As the US government spending bill is still looming, the US House Republicans are negotiating a stop-gap to avoid a government shutdown. In Germany, focus is on the SPD convention this weekend to confirm whether coalitions talks will eventually take place. This week, the CBOE volatility index rose to 12.22 as of writing.
Major US equities set foot on a negative tone towards the end of the week. Energy shares fell while technology ones rose slightly. However, they are still trending at a weekly high at the time of writing.

US500 and WS30 (daily chart)

Source: GO Markets MT4

Nikkei also dropped to 23,806 points underpinned by the underperformance of real estate stocks and financial firms.
The US Dollar Index continues to trend lower despite some positive US data releases this week. The index attempted to recover during the week but fell flat. Mixed housing and jobless claims reports were not enough to lift the Dollar which was further weakened against major currencies. Amongst the G10 currencies, the Pound was seen outperforming this week. Over to the UK Retail Sales to be released in today’s later trading session.

US Dollar Index (daily chart)

Source: GO Markets MT4
In the commodities markets, oil and gold retracted from last week’s gains. Metals such as Gold dropped to $1,329 despite concerns over the US government shutdown. Some analysts argued that a potential shutdown would increase demand for safe havens whilst some see it as a political issue with little economic impact.
Oil prices surge at the beginning of the week over initial promising reports but retracted towards the end of the week. EIA report shows that US crude oil inventories have decreased where as OPEC report shows a revision in supply in 2018 fuelled by the higher prices which are attracting US and Canada producers.
XAUUSD and USOUSD (weekly chart)

Source: GO Markets MT4

The Cryptocurrency market was also under pressure this week.  The downfall is underpinned by the negative sentiment following the possible banning of trading activity in South Korea which may signal that investors are leaving the markets. On Tuesday, it is reported that the Top 20 cryptocurrencies dropped in terms of market capitalization. On Thursday, we saw a recovery in Bitcoins and Ethereum and the total market capitalization of all cryptocurrencies which edged down to $450 million recovered and near $600 million.
BTCUSD and ETHUSD (hourly chart)

Source: GO Markets MT4

Monday, 22 January 2017
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See more information about the coming week with our Economic Calendar.


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