Amazon sees biggest ever one-day gain in value

“A penny saved is a penny earned.” - Benjamin Graham

 

 

 

HEADLINES

 

 

 

• Dollar rises from two-week low after U.S. jobs surprise
• Gold firms as inflation risks counter higher U.S. yields, dollar
• Oil hits seven-year highs as rally extends to a 7th week
• World equities wobble as bond yields rise after positive U.S. jobs data, earnings
• Amazon surges with record $190 billion gain in value
• EUR/CHF: Higher EZ yields to help reverse downward pressure – MUFG

 

 

 

FOREX

 

 

 

Dollar rises from two-week low after U.S. jobs surprise

 

 

The U.S. dollar advanced from two-week lows on Friday after data showed the world's largest economy created far more jobs than expected, raising the chances of a larger Federal Reserve interest rate increase at the March policy meeting. 

Data showed U.S. nonfarm payrolls grew 467,000 jobs last month. Data for December was revised higher to show 510,000 jobs created instead of the previously reported 199,000.

 

 

 

COMMODITIES

 

 

 

Gold firms as inflation risks counter higher U.S. yields, dollar

 

 

Gold prices edged higher in choppy trade on Friday as growing inflation worries helped cushion pressure from a firmer dollar and higher U.S. Treasury yields after a surprisingly upbeat U.S. jobs data. An unexpected jump in U.S. job growth in January fanned fears around inflation and weighed on risk sentiment among investors.

 

 

Oil hits seven-year highs as rally extends to a 7th week

 

 

Oil prices surged to seven-year highs on Friday, extending their rally into a seventh week on ongoing worries about supply disruptions fueled by frigid U.S. weather and ongoing political turmoil among major world producers.

 

 

 

STOCKS

 

 

 

World equities wobble as bond yields rise after positive U.S. jobs data, earnings

 

 

Stock indexes around the globe traded mixed despite strong Amazon earnings and upbeat economic data on Friday, while gold prices slipped under pressure from a firmer dollar and higher U.S. Treasury yields, potentially bolstering the case for Federal Reserve rate hikes.

Earlier in the session, a sell-off in bonds briefly pushed Germany's 5-year yield positive for the first time in four years after the European Central Bank was more hawkish than expected.

 

 

Amazon surges with record $190 billion gain in value

 

 

A day after Facebook owner Meta Platforms (FB.O) suffered the deepest loss of stock market value in history for a U.S. company, Amazon logged the greatest ever one-day increase in value.

Shares of the online retail and cloud computing giant surged 13.5% on Friday following its blowout quarterly report, expanding its market capitalization by around $190 billion by the end of trading.

 

 

 

ANALYSIS

 

 

 

EUR/CHF: Higher EZ yields to help reverse downward pressure – MUFG

 

 

“EUR/CHF is still trading well below levels from just over a year ago when it was trading above the 1.1000- level. The recent sharp move higher in euro-zone yields is not yet fully reflected in a higher EUR/CHF rate.”

“We remain optimistic as well that a diplomatic solution will be found for the stand-off between the Ukraine and Russia. The main risks to our bullish view are: i) higher yields trigger a bigger correction lower for risk assets and boost safe have demand for the CHF, and ii) Russia invades the Ukraine triggering a sharp move higher for the CHF as it would be viewed as a negative shock for European economies.”

 

 

 

CHART

 

 

 

WTI SPOT – Daily Candlesticks

Source: GKFX Prime Metatrader 4

WTISPOT has touched the top of a rising wedge pattern, while also testing a diverging RSI downtrend line. - Prepared by Trading Writers*

 

 

 

CALENDAR

 

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

SOURCE:

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/eur-chf-higher-ez-yields-to-help-reverse-downward-pressure-mufg-202202041607
https://finance.yahoo.com/news/dollar-weakens-euro-shines-ecb-030606250.html
https://www.reuters.com/business/amazon-surges-eyes-wall-street-record-gain-value-2022-02-04/
https://www.reuters.com/business/energy/oil-extends-gains-above-90bbl-winter-storm-sweeps-through-united-states-2022-02-04/
https://www.reuters.com/markets/europe/gold-set-weekly-gain-weaker-dollar-inflation-woes-2022-02-04/
https://www.reuters.com/markets/europe/dollar-set-bruising-week-after-ecb-boe-get-more-hawkish-2022-02-04/