Daily News & Forecast, Monday, January 09, 2017

2017-01-09 03:35:06
 

 

HIGH IMPACT NEWS RELEASES:

Far East: No Major Data

Europe: DE- Trade, Industrial Output

North America: No Major Data

USD

  • After the S&P 500 returned 12%, with dividends reinvested, in 2016, the benchmark index is up 1.7% this year.All 11 sectors of the S&P 500 SPX, +0.35% are up so far in 2017, with health care the best performer, rising 2.9%. The weakest sector is utilities, which has eked out a gain of 0.5%.
  • The dollar rallied against its major rivals on Friday, turning firmly higher for the week as the latest reading on the labor market underscored the belief that inflation could be poised to return to the market.

EUR

  • European stocks ended slightly lower in choppy action on Friday after the closely watched U.S. jobs report painted a mixed of the country’s job market.
  • The Stoxx Europe 600 index SXXP, -0.05% trimmed its loss for the day to end 0.1% lower at 365.45. For the week, the benchmark closed 1.1% higher after entering bull-market territory on Tuesday.

GBP

  • U.K. stocks erased earlier losses and bounced higher in Friday afternoon action after the closely watched U.S. jobs report fueled optimism over the country’s labor market and sent the dollar higher against the pound.
  • That pulled the FTSE 100 index UKX, +0.20% out of the red to end 0.2% higher at 7,210.05, for a ninth straight win and a record close. The benchmark has now logged seven straight consecutive record closes, the longest streak since 1997.
  • The report spurred a jump in the dollar DXY, +0.79% in turn sending the pound GBPUSD, +0.0000% lower and boosting U.K. exporters. Sterling fell to $1.2312 from $1.2419 late Thursday in New York.

JPY

  • Notwithstanding wild currency swings and antagonistic Donald Trump tweets, Asian shares ended the first week of the year in the black, in contrast to last year, when a crash in Chinese stocks rattled global markets.
  • Japan’s Nikkei Stock Average NIK, -0.34% ended up 1.8% for the week.

XAU

  • The US dollar today found footing and support, trading up almost 7/10 of a percent to close back above 102 on the Dollar Index. This upside move in the US dollar amounted to significant pressure in the precious metals markets, with gold losing approximately $8.40 on the day.According to the Kitco Gold Index, the strong US dollar moved gold prices 9.30 lower, with normal buying accounting for a net gain of approximately $.90. Silver also had a fractionally small net gain on the day of $.02. However after subtracting $.13 from dollar strength, silver’s net change on the day was lower by $.11.

Major instruments:

EURUSD: The most likely scenario for the pair is going up to the nearest target of  1.0591.

1

EURJPY: The most likely scenario for the pair is going up to the nearest target of  123.69.

2

GBPUSD: The most likely scenario for the pair is going down to the nearest target of  1.2217.

3

GBPJPY: The most likely scenario for the pair is going up to the nearest target of  144.10.

4

USDJPY: The most likely scenario for the pair is going up to the nearest target of 117.72.

5

XAUUSD: The most likely scenario for the pair is going up to the nearest target of 1,174.0.

6