EUR/USD
0.00%
C
+1.75%
JPM
+1.26%
PEP
+4.01%
DX
+0.05%
The US Dollar continued to fall against other major currencies, with the US Dollar Index (USDX) closing 0.38% lower on Friday. The Mexican Peso (MXN) traded again stronger against the Dollar, closing the week with a gain of close to 4 percent, the best weekly performance in years. Reducing concerns about the policies of the leftist President elect Obrador helped the Peso.
Gold closed the week on Friday with a small gain, ending the losing streak after previously trading lower for three weeks in a row.
Equity indices traded overall higher on Friday and continued with the positive sentiment in early trading on Monday. The strong NFP data from the US could have been one factor for the recovery, while concerns about the fallout from the US led tariff conflict remain.
Cryptocurrencies pushed higher on Saturday with Bitcoin reaching a 2-week high, and other cryptocurrencies also moderately recovering.
On Monday Germany releases its Merchandise Trade level statistics and the United States will release its Consumer Credit data. On Tuesday the United Kingdom releases data about its Merchandise Trade and also its Manufacturing Output and Industrial Production (IP). France and Italy are also scheduled to release IP data on Tuesday.
EUR/USD
The EUR/USD was up in early trading on Monday at its highest level in more than 3 weeks. Some analysts pointed out that the continued Dollar weakness could have been due to the slower growth of Average Hourly Earnings in the US than expected, which were reported at +0.2% m/m (expected +0.3%).
Markets were surprised to see strong Industrial Production (IP) indicators from Germany on Friday at +2.6% m/m (expected -0.2%). Italian Retail Sales were also stronger than expected at +0.8% m/m (expected +0.2%).]
On Monday Germany will release its Merchandise Trade statistics, while in the US data on Consumer Credit is expected.
EUR/USD Chart
Pivot:1.173Support:1.1731.171.1675Resistance:1.1791.18251.186Scenario 1:long positions above 1.1730 with targets at 1.1790 & 1.1825 in extension.Scenario 2:below 1.1730 look for further downside with 1.1700 & 1.1675 as targets.Comment:the RSI lacks downward momentum.WTI Oil
On Friday the oil market showed a mixed picture with the WTI oil closing higher, while the Brent oil, benchmark ended the week lower. Some market commentators point to the bottlenecks the North American oil production industry is currently experiencing, as one possible factor for the declining spread between WTI and Brent.
While the US Baker Hughes Oil Rig Count was reported up by 5 oil rigs, to 863, there are concerns about the limited capacities of pipelines from the Permian oil fields.
On Tuesday the American Petroleum Institute (API) will release oil stockpile figures, followed by the Energy Information Administration (EIA) on Wednesday.
WTI Oil Chart
Pivot:73.6Support:73.673.372.8Resistance:74.4574.875.25Scenario 1:long positions above 73.60 with targets at 74.46 & 74.80 in extension.Scenario 2:below 73.60 look for further downside with 73.30 & 72.80 as targets.Comment:the RSI advocates for further advance.Hong Kong 50
Despite concerns over an expanding trade conflict with the US, Chinese stock indices and the market in Hong Kong traded higher on Monday. China seemed still intent to find a solution in the dispute as it instructed state run media to soften criticism of US President Trump.
Xiaomi began trading on Monday at the Hong Kong Stock Exchange with a disappointing opening price of HK$16.60, below the offer price of HK$17. The relatively low price could have been due to cautious investors in light of the current market conditions, but also concerns that the stock is overvaulted.
The Chinese social media giant Tencent announced plans to spin off and list its music business company in the US.
On Tuesday in China Consumer Price Index (CPI) and Producer Price Index (PPI) data is due to be released.
Hong Kong 50 Chart
Pivot:28090Support:280902794027720Resistance:285802886029070Scenario 1:long positions above 28090.00 with targets at 28580.00 & 28860.00 in extension.Scenario 2:below 28090.00 look for further downside with 27940.00 & 27720.00 as targets.Comment:the RSI shows upside momentum.US 500
US equity indices closed higher on Friday. In particular the unexpectedly good results from the Non-Farm Payrolls (NFP) with 213 thousand jobs created (expected 190 thousand), could have helped the market sentiment outweigh the concerns over a trade escalations with China. However the Unemployment Rate was reported higher than expected at 4.0% (expected 3.8%).
Especially Biotech (US Biotech ETF +3.72%) and health care sector stocks (US Health Care ETF +1.48%) traded higher on Friday.
A recent research study into the graphic boards market found out, that AMD (+5.68%) managed to show sizable gains in its market share, compared to its competitor Nvidia (+1.90%).
This week already some blue chip companies such as Pepsico (NASDAQ:PEP) on Tuesday, Delta Airlines (NYSE:DAL) on Thursday and different banks like Citigroup (NYSE:C) and JP Morgan Chase (NYSE:JPM) on Friday, are set to release their quarterly earnings.
US 500 Chart
Pivot: 2756.5 Support: 2756.5 2747.5 2731 Resistance: 2785.25 2796 2805 Scenario 1: long positions above 2756.50 with targets at 2785.25 & 2796.00 in extension. Scenario 2: below 2756.50 look for further downside with 2747.50 & 2731.00 as targets. Comment: the RSI shows upside momentum. The key support at 2756.5 should maintain the buying interest.
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