Market Update – January 31 – USD & Stocks hold gains plenty of risks around

Stock markets rallied (+2.43%) Friday, Asia markets are higher (Nikkei +1.4%) in thin Lunar Holiday trading,  USD & Yields & Oil all remain bid with Gold heavy. Markets have a busy week ahead, with China closed, tensions in Ukraine/Russia not subsiding and North Korea firing missiles into Sea of Japan.

BOE, ECB, RBA,  ISM PMI’s, and NFP on Friday

USD (USDIndex 97.10) holds 1.7% gains forthe month
US Yields 10-yr moved closed at 1.782 &  trades at 1.785%.    
Equities – USA500 +105 (+2.43%) 4431 – (APPLE +6.98%) USA500 FUTS hold 4428.     
USOil – Breached $87.00  on Friday now at at 86.30 
Gold – down to $1788 afrom highs over $1850 last week   
Bitcoin remains under $40,000 back to test $37 100
FX marketsEURUSD back to .1.1170 USDJPY now 115.40 & Cable back to 1.3433

OvernightChinese Factory data missed & Japanese Consumer confidence, Housing Starts and Construction spending all missed significantly too.

European Open – The March 10-year Bund future is up 31 ticks, underperforming versus Treasury futures, which are also in the red, however. European stock futures meanwhile are higher, with the DAX up 1.3% and set for a strong rebound after the sharp sell off on Friday that came in the wake of weaker than expected German GDP numbers. Still, risk appetite remains supported ahead of BOE & ECB this week.

Today – German CPI, EZ GDP (Flash, Prelim.), Speeches from Fed’s Daly & George.

 

Biggest FX Mover @ (07:30 GMT) AUDCHF (+0.92%) Rallied from 3 day fall at 0.6490 to 0.6560 now. MAs aligned higher, MACD signal line & histogram rising  over 0 line RSI 65 & rising,  H1 ATR 0.00125 Daily ATR 0.0060.

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Stuart Cowell

Head Market Analyst

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