Eyes Remain Fixed on the ECB & Eurzone Economic Events for Direction.

By Content-mgr - on January 24, 2019

Eyes remain fixed on ECB and the Eurozone’s economic events to determine direction for the EUR and some of the EU stocks and bonds, with President Draghi ECB’s Chief delivering a highly anticipated press release about 30 minutes after the rate decision is announced. The crude Oil Inventories report from the Energy Information Administration, (EIA) due later in the day is to shed more light on the future of WTI oil prices. As The API American Petroleum Institute’s report Wednesday did not support crude prices for uptrends, with a surprise built of 6.5 million barrels.

Although market participants are under the impression that the European Central Bank may stand pat on the interest rates leaving it at 0.00% for the foreseeable future there is still the desire to understand how current decisions may affect the yield curve in coming months to aid the overall goals of the ECB.

Meanwhile the USD, strengthened as could be witnessed with the DXY, which was spotted up 0.31% at the time of print 10:20GMT. Trading between 96.04 – 96.42.

Commodities:

Market dynamics drives commodity prices.

  • Oil: Crude prices were seen challenged today falling after the API reported a surprise increase. Oil traders are cautiously expecting an increase from the day’s EIA report which may send prices further down side if more supply increase are discovered. At the time of print it was at 52.25 down. 0.19%. Likely to trade between 52.88-52.13 even slips to 51.90+ is very possible.
  • Gold: With the USD back in the driver’s seat. And risk appetite improved.  Attraction for the precious metal is diminished sending assets to trade from 1,283.85 down 0.42% at 1,278.65 further downsides to 1,2776 may be established as the day’s support. However upward corrections are inevitable.

Global Markets:

Most of the global stock were bullish except for the ones hit by local social and economic dynamics like the FTSE 100/ UK100. The rally was prompted by better than expected reports from a major chip maker (STMicro). Thus the prospects of a positive open for Wall Street remains high. Even though the US government goes through a month of partial shutdown.
  • Germany 30: Was seen up 0.62% and likely to trade. From 11,023.1 – 11,146.5. 
  • Italy 40: Rose 1.04% by the time of print 10:20GMT standing at 19,612.50 and set to trade from 19,382.50 -19,630.00.
  • UK100: Unlike its counterparts, the UK100 received a dirty slap from plummeting Oil stocks and falling Vodafone shares, as the listings are made up of some of the Oil giants like BP. |caught trading in reverse mode from 6,792.8 down 0.10% to 6,774.2 it could drop back to 6,749.00 just below current support levels.
  • US30: Rumours of a senate vote today, to end the partial US executive shutdown which has impacted hundreds of thousands of people negatively, together with some outstanding earnings reports recorded on the DOW Futures bolstered the stock prices.  Up 0.19% at 24,597.0 possibilities of a rise beyond 24,607.0 remain very tangible.   

FX Market

One of the most “choppiest’ training days in the FX market.  With the ECB on the docket and various reports due from the US jumps in and out of gains will be frequent however unveiling some slick trading windows. 
  • EUR/USD: is set to be trading in and out of gains in ta range from  1.1330 – 1.1398.
  • GBP/USD: The Pair was bullish in the early EU open market session however lost steam. To be trading between 1.3016 – 1.3096
  • USD/JPY: The USD, rose against the JPY trading up 0.12% from 109.44 and heading to 109.80

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