Morning Commodities: Gold, Oil and Gas updates

Morning commodities updates:

Gold. Gold prices are testing a 2 ½ week high, driven by a weaker U.S. Dollar and yesterday’s U.S. inflation report that showed a faster than expected rise in consumer prices.

At 1008 GMT, April Comex Gold futures are trading $1356.80, down $1.20 or -0.09%.

On Wednesday, the USA government reported that consumer prices rose more than expected in January as Americans paid more for gasoline, rental accommodation and healthcare. This was enough to fuel gold’s biggest one-day percentage gain since May 2017.

A recovery in broader risk sentiment was seen weighing on the U.S. Dollar, which had gained during the market turmoil earlier in the month. This helped make gold a more attractive investment.

Data on Thursday showed that the U.S. producer price index rose in line with expectations by 0.4% last month. Rising inflation would be a catalyst to push the Federal Reserve toward raising interest rates at a faster pace than currently expected.

Oil.  Crude oil prices rose on Friday, helped by a weak U.S. dollar and by hopes for further efforts to limit global oil output. The U.S. West Texas Intermediate crude March contract was up 43 cents or about 0.72% at $61.78 a barrel by 04:05 a.m. ET (08:05 GMT), the highest since February 8. Elsewhere, Brent oil for April delivery on the ICE Futures Exchange in London gained 55 cents or about 0.87% to $64.89 a barrel.

Gas. Natural gas markets have gone back and forth during the day on Thursday, ultimately settling on negativity. The market is reaching towards the $2.50 level underneath. The market is extraordinarily oversold too. Natural gas inventory draw was higher than expected

Sources: 

https://www.investing.com/news/stock-market-news/natural-gas-inventory-draw-was-higher-than-expected-1253906

https://www.investing.com/news/commodities-news/gold-prices-at-312-week-highs-as-us-dollar-tumbles-1258204

https://www.investing.com/news/commodities-news/crude-oil-prices-rise-on-renewed-optimism-1258403

https://www.fxempire.com/forecasts/article/price-of-gold-fundamental-daily-forecast-steep-dollar-plunge-should-spike-gold-prices-475484?utm_medium=email&utm_source=analysis-newsletter&utm_campaign=daily&utm_content=Fundamental-index-0

https://www.fxempire.com/forecasts/article/crude-oil-price-analysis-february-16-2018-475631?utm_medium=email&utm_source=analysis-newsletter&utm_campaign=daily&utm_content=Fundamental-index-2

https://www.fxempire.com/forecasts/article/gold-price-forecast-february-16-2018-technical-analysis-475687?utm_medium=email&utm_source=analysis-newsletter&utm_campaign=daily&utm_content=Videos-index-4

https://www.fxempire.com/forecasts/article/natural-gas-price-forecast-16-2018-technical-analysis-475690?utm_medium=email&utm_source=analysis-newsletter&utm_campaign=daily&utm_content=Videos-index-2

Amazon beats Microsoft on list of world’s most valuable companies, and becomes 3rd!

Amazon’s market value soared above $685 billion, making the Jeff Bezos-led giant worth more than Microsoft for the first time ever. Microsoft’s market value currently stands at $684 billion. Amazon (AMZN) now trails only Apple (AAPL), which has a market cap of about $815 billion, and Google owner Alphabet (GOOGL), valued at $750 billion.
These tech giants are all in a race to the magical trillion dollar level, a height that no U.S. company has topped as of yet.

But Amazon clearly has the most momentum. Its stock has soared nearly 21% this year, well ahead of the gains of Alphabet and Microsoft. Apple’s stock has fallen year-to-date.

Combined, all other public companies based in Washington state have a market capitalization of only about $400 billion. Chicago-based Boeing has a market value of $205 billion.

Amazon has nearly quadrupled in value over the last three years, a surge that made founder and chief executive Jeff Bezos the world’s richest man, displacing his Medina neighbor, Microsoft co-founder Bill Gates. Amazon is still well behind Google-parent Alphabet Inc. GOOGL, +0.68% GOOG, +0.65% which currently sits in second place. First-place Apple Inc. AAPL, +1.27% has a big lead with a market cap of $849.24 billion. Bezos has already passed Microsoft (MSFT) co-founder Bill Gates as the wealthiest person on the planet back in October, according to Forbes and Bloomberg. Bezos is now worth $116 billion, nearly $25 billion more than Gates

Amazon (AMZN:US) Amazon is a Consumer Discretionary company, specialized in Retail – Discretionary. Amazon is up by 21.85% since the beginning of the year. AMZN:US hit its all-time high of 1498 in February 02, 2018 and its record low of 1.31 in February 02, 2018. In the past 52-weeks, Amazon ranged from 831.55 (2017-02-14) to 1490.6095 (2018-02-02).

Sources: 

http://fortune.com/2018/02/15/amazon-microsoft-third-most-valuable-company/

https://www.investing.com/equities/amazon-com-inc-news

https://markets.ft.com/data/equities/tearsheet/summary?s=AMZN:NSQ

http://money.cnn.com/2018/02/06/investing/amazon-microsoft-market-value/index.html

https://markets.ft.com/data/equities/tearsheet/profile?s=AMZN:NSQ

https://www.marketwatch.com/story/amazon-passes-microsoft-to-become-the-3rd-largest- us-company-2018-02-14

https://www.dailysabah.com/technology/2018/02/15/amazon-passes-microsoft-becomes- 3rd-largest-us-company

https://www.pressherald.com/2018/02/14/amazon-passes-microsoft-on-list-of-worlds-most- valuable-companies/

https://finance.yahoo.com/m/3a36ef40-447b-36ae-8ccd-3f2d498a0c62/amazon-passes- microsoft-to.html

https://ieconomics.com/amazon

 

Airbus shares skyrocket, stocks in Europe recover

A recovery rally in European stocks gathered pace for a second day on Thursday after investors brushed off a spike in U.S. inflation, turning their focus back to strong company earnings from heavy hitters including Europe’s largest aerospace firm, Airbus.

Airbus shares were up 8.1 percent at 91 euros in early session trading, close to their earlier record high of 94 euros reached last month. The stock was also the top performer on France’s benchmark CAC-40 index. Company however booked a new 1.3 billion euro charge on its A400M military plane.

Airbus took a new 1.3 billion euro ($1.62 billion) hit on its A400M military transport plane, but also posted adjusted 2017 operating profit of 4.253 billion euros on revenues of 66.767 billion euros and predicted a 20 percent rise in the widely watched core profit item. Airbus reported strong 2017 numbers for adjusted EBIT, net income and free cash flow which were clearly ahead of our estimates.

The pan-European Stoxx 600 was up 0.5 per cent by 0824 GMT, hitting its highest level in a week. The main European stock index was still down 6.5 per cent from its 2 1/2-year peak hit as recently as January 23rd. Earnings took center stage once more, with strong results driving the top gainers, with already mentioned Airbus, and Ipsen, Aegon, and Schneider Electric (PA:SCHN) following.

Source:

https://www.reuters.com/article/us-airbus-results-stocks/airbus-shares-rise-as-higher-profits-cash-flow-offset-impact-of-new-a400m-charge-idUSKCN1FZ0RM

http://www.bbc.com/news/business-43069630

https://www.thetimes.co.uk/article/airbus-takes-1-3bn-charge-on-a400m-jet-as-profits-rise-57lgb6cgl

https://www.irishtimes.com/business/markets/european-shares-build-on-recovery-rally-airbus-shines-1.3393187

https://www.ft.com/content/17258d16-1229-11e8-8cb6-b9ccc4c4dbbb

https://www.investing.com/news/stock-market-news/european-shares-build-on-recovery-rally-airbus-shines-1251033

US bond yields jump. This leads to futures trading sharp drop. US Inflation is up.

The dollar rose to the day’s highs against a basket of the other major currencies on Wednesday after data showing that U.S. inflation rose more strongly than expected in January. This consequently led Wall Street traders to jump out from U.S. stock futures with price drop around 1% on Wednesday.

U.S. consumer prices gained 0.5% from a month earlier and to 0.3% on a core basis, with core inflation posting its biggest gain in a year! Investors are  convinced now that Federal Reserve will raise rates twice this year as inflation firms, and an increasing chance of a third rate hike.

The inflation figures for January had been keenly awaited after signs of wage growth in the most recent US employment report rattled both bond and equity markets this month. The annual rate of inflation rose to 2.1% in January and to 1.8% on a core basis the Department of Labor said. The inflation data had been hotly anticipated after fears over rising price pressures and thus a faster rate of interest rate increases triggered the initial selloff in global equity markets two weeks ago.

Anyhow, the euro fell to the day’s lows against the dollar, with EUR/USD losing 0.46% to 1.2293 after earlier rising to a one-week high of 1.2393.

Sources: 

https://www.investing.com/news/forex-news/forex–dollar-hits-days-highs-as-us-inflation-rises-1245223

https://www.investing.com/news/stock-market-news/futures-point-way-higher-before-inflation-1244648

https://www.investing.com/news/economy-news/traders-add-to-bets-on-fed-rate-hikes-after-inflation-report-1245417

https://www.ft.com/content/6800e2e6-116e-11e8-8cb6-b9ccc4c4dbbb

https://www.ft.com/content/7503afc2-10f2-11e8-8cb6-b9ccc4c4dbbb

Major Cryptonews for 10 – 14 of February 2018

So Is There a Correlation Between Bitcoin and Stock Market? Yes, But No

Cryptocurrencies have their own economy based on activity on that Blockchain. Equities have their own economy based on earnings per share multiples. The institutional overlap is essentially zero. But what could be concluded from this recent pattern across the markets is that investor sentiment can carry over from the stock market to the Bitcoin market. Because of a mainstream adoption wave that has seen Bitcoin accepted as an investable asset, there is the beginnings of a crossover.

South Korea Considers Adopting Crypto Exchange Licensing System Like NY’s BitLicense

According to a study reported, over a third of salaried Koreans hold around $5000 in crypto, while 80 percent of South Korean investors have made profits from crypto investments. Government now considers the adoption of an exchange approval system as the additional regulation on cryptocurrencies. Korean Government is most likely benchmark the model of the State of New York that gives a selective permission.

Microsoft To Implement Blockchain-Based ID System

Microsoft revealed its plans to integrate Blockchain-based decentralized IDs (DIDs) into its Microsoft Authenticator app. This digital identity would not be controlled by any centralized institution and would guarantee fully private data storage, enabling the individual to have full control of all elements of digital identity.

Dubai Gold Trader Earns First Cryptocurrency Trading License

A Dubai-based gold investment and trading firm has become the first company in the Middle East to receive a government-backed cryptocurrency trading license. Dubai gold trader Regal RA DMCC has received a trading license by the Dubai Multi Commodities Centre (DMCC), allowing the company store cryptocurrencies like Bitcoin, Ethereum and other altcoins in a “deep cold storage vault” located in Almas Tower, Dubai. “We have developed what we believe is the number one most secure way of investing in Bitcoin, Ethereum and other crypto-commodities.” – stated in the company.

Cryptocurrency market will hit $1 trillion valuation this year, CEO of top exchange says

Jesse Powell, founder and CEO of Kraken, said Tuesday that the cryptocurrency market would continue to see an “acceleration” of growth. Asked whether he thought the market capitalization of all cryptocurrencies would hit the $1 trillion mark in 2018, Powell agreed. He told CNBC: “You’ve got a lot more kids graduating from crypto programs at universities now. I think we’re just going to see it continue exponentially from here.”

(BTC/USD) Bitcoin Analysis

Bitcoin price is finding support at the bottom of its triangle consolidation and may be due for a move past the resistance if buyers are strong enough.

Bitcoin price is currently consolidating, forming higher lows and lower highs inside a triangle pattern.
Price is bouncing off support and might be due for a test of resistance soon.
Technical indicators are also suggesting that the bounce could take place, possibly even leading to an upside break.
The cryptocurrency market recovery hit a wall on Tuesday, forcing the Bitcoin price back down to $8,500 and all major coins and tokens into decline as well.

(ETH/USD) Ethereum Analysis

The Ethereum price matched the index on Tuesday, declining four percent to $828 on Bitfinex. Ethereum now has a market cap of $81.7 billion, which leaves its total market share at 19.8 percent.

ETH price recently traded above the $860 level, but it failed to gain momentum against the US Dollar.
There was a break below a short term contracting triangle with support at $852 on the hourly chart of ETH/USD (data feed via SimpleFX).
The pair may decline a few points in the near term, but it remains supported above the $810 level.
Ethereum price is currently correcting lower against the US Dollar and Bitcoin. ETH/USD remains supported on the downside near the $820 and $810 levels.

Hourly MACD – The MACD is currently showing a few bullish sign, but it is lacking upside momentum.

Hourly RSI – The RSI has just moved above the 50 level, which is a positive sign.

Major Support Level – $830

Major Resistance Level – $865

(BCH/USD) Bitcoin Cash Analysis

Bitcoin cash price is positioned nicely above the $1,160 support area against the US Dollar. BCH/USD may slowly gain pace and move higher towards the $1,350 level.

Bitcoin cash price is well supported above the $1,160-1,180 support area against the US Dollar.
Buyers are attempting an upside break above a bearish trend line with resistance at $1,250 on the hourly chart of BCH/USD (data feed from SimpleFX).
The pair may rise in the short term towards the $1,300 and $1,325 resistance levels.
It seems like bitcoin cash price is consolidating above the $1,160 support level against the US Dollar. There were a couple of attempts to break the $1,150-60 support zone, but sellers failed.

Hourly MACD – The MACD for BCH/USD is slowly moving from the bearish to bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is rising and it has just moved above the 50 level.

Major Support Level – $1,160

Major Resistance Level – $1,350

(XRP/USD) Ripple Analysis

Ripple price is following a bullish path against the US Dollar and Bitcoin. XRP/USD should move above the $0.9800 resistance to gain upside momentum.

Ripple price is finding strong buying interest near the $0.9100 level against the US dollar.
Buyers are making an attempt to push the price above a bearish trend line at $0.9550 on the hourly chart of the XRP/USD pair (data source from SimpleFx).
The pair could accelerate higher once there is a close above the $0.9800 resistance in the near term.
There was a positive development in Ripple price from the $0.9000 swing low against the US Dollar. The price tested the $0.9100 and $0.9000 support levels on a couple of occasions. However, sellers failed to push the price below $0.9000, which prompted an upside move.

Hourly MACD – The MACD for XRP/USD is mostly flat with a few bearish signs.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD has just moved below the 50 level.

Major Support Level – $0.9200

Major Resistance Level – $1.0250

(LTC/USD) Litecoin Analysis

Of course there is a direct relationship between yesterday’s close above the middle BB and the way stochastics are turning from the oversold territory if we check the secondary chart.

This is pretty good from a buyers perspective and all that remains is a surge past $170 as per our LTC trade plan.

If that happens today, buyers can begin picking out buy signals in lower time frames from tomorrow.

Sources: 

https://cointelegraph.com/news/so-is-there-a-correlation-between-bitcoin-and-stock-market- yes-but-no

https://cointelegraph.com/news/south-korea-considers-adopting-crypto-exchange-licensing- system-like-nys-bitlicense

https://cointelegraph.com/news/microsoft-to-implement-blockchain-based-id-system

https://www.cnbc.com/2018/02/13/cryptocurrency-market-to-hit-1-trillion-valuation-in-2018- kraken-ceo.html

Dubai Gold Trader Earns First Cryptocurrency Trading License

https://www.ccn.com/bitcoin-price-unable-to-break-through-resistance-at-9000-endures- moderate-decline/

https://www.newsbtc.com/2018/02/14/bitcoin-price-technical-analysis-02-14-2018-sitting- tight-breakout/

https://www.newsbtc.com/2018/02/13/ethereum-price-technical-analysis-eth-usd-remains- supported-2/

https://www.newsbtc.com/2018/02/14/bitcoin-cash-price-technical-analysis-bch-usd- remains-supported-2/

https://www.newsbtc.com/2018/02/14/ripple-price-technical-analysis-can-xrp-usd-gain- upside-momentum/; https://www.newsbtc.com/2018/02/14/altcoin-analysis-neo-eos-ltc-nem- lumens-4/

 

Daily Forex Core Spotlight: oil markets negative, gold bullish, EUR/USD rises up

Oil prices were stable-to-negative on Wednesday, supported by a statement that Saudi crude output would drop in March, healthy economic growth and on a weakening U.S. dollar. The WTI Crude Oil market rolled over during the trading session on Tuesday, as we continue to see negativity flood into the market, and Brent markets continue to drift lower as well, reaching down towards the $62 level.

The Saudi energy ministry said on Wednesday that Saudi Aramco’s crude output in March will be 100,000 barrels per day (bpd) below its February level while exports would be kept below 7 million bpd. Ongoing weakness in the U.S. dollar as well as economic growth were also supporting oil markets, traders said. U.S. crude is also increasingly appearing on global markets, and more is set to come as the Louisiana Offshore Oil Port starts testing supertankers for exports.

EUR/USD pair broke higher above the 1.23 level during the yesterday’s session but experienced resistance above and pulled back lower. The pair is now expected to go higher towards the 1.24 level and then towards 1.25 level eventually from here which is a large, round, psychologically significant level.The pair has massive support around the 1.21 level underneath which is unlikely to be broken. There is a certain amount of bullish pressure underneath.

Gold futures finished higher for a second day as the dollar weakened on Tuesday. The market has also nearly recovered all of last week’s loss. Gold showed limited upside reaction last week to the volatility in the stock and bond markets, perhaps because investors viewed the weakness in the equities markets as a “healthy” correction due to overvalued stocks. It looks as if the gold markets are trying to make a longer-term move, perhaps towards the $1350 level, which is massive resistance.

Sources:

https://www.investing.com/news/commodities-news/oil-stable-on-weaker-dollar-and-healthy-economic-growth-but-pockets-of-oversupply-linger-1242012

https://www.fxempire.com/forecasts/article/eur-usd-aud-usd-gbp-usd-usd-jpy-daily-outlook- february-14-2018-475082

https://www.investing.com/currencies/eur-usd

https://www.fxempire.com/forecasts/article/price-of-gold-fundamental-daily-forecast-dollar- will-have-biggest-impact-on-gold-prices-475033