Brent crude tests 2018 high

Learn to take losses. The most important thing in making money is not letting your losses get out of hand - Marty Schwartz

 

 

 

HEADLINES

 

 

 

• Dollar snaps three-day losing streak as selling pressure abates
• Speculators increase net long U.S. dollar bets in latest week
• Oil's bull run rolls on despite possible China reserves release
• Gold dips as U.S. bond yields edge up, dollar firms
• Dow closes lower after disappointing bank results
• RBA: QE to end in February despite Omicron – ANZ

 

 

 

FOREX

 

 

 

Dollar snaps three-day losing streak as selling pressure abates

 

The U.S. dollar snapped a three-day losing streak on Friday as the recent selling spree driven by the view that Federal Reserve tightening moves were largely priced in abated, and as weaker risk appetite in financial markets led investors to shun riskier currencies.

The greenback, which rose more than 6% against a basket of currencies in 2021, came under pressure this week despite Fed Chair Jerome Powell saying that the U.S. economy is ready for the start of tighter monetary policy and data showing the largest annual rise in inflation in nearly four decades.

 

Speculators increase net long U.S. dollar bets in latest week

 

Speculators increased their net long U.S. dollar positions in the latest week, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.

The value of the net long dollar was $19.34 billion in the week ended Jan. 11, compared with a net long of $18.87 billion the previous week.

 

 

 

 

COMMODITIES

 

 

 

Oil's bull run rolls on despite possible China reserves release

 

Oil futures settled higher on Friday, boosted by supply constraints and worries of a Russian attack on neighbouring Ukraine, pushing prices toward their fourth weekly gain despite sources saying China is set to release crude reserves around the Lunar New Year.

 

Gold dips as U.S. bond yields edge up, dollar firms

 

Gold prices slipped on Friday, weighed down by an uptick in Treasury yields on prospects of U.S. interest rate hikes and a stronger dollar. Gold gained briefly after the release of data showing retail sales tumbled by 1.9% in December as Americans struggled with shortages of goods due to supply chain bottlenecks and an explosion of COVID-19 infections.

 

 

 

STOCKS

 

 

 

Dow closes lower after disappointing bank results

 

The Dow closed lower on Friday with a big drag from financial stocks as investors were disappointed by fourth quarter results from big U.S. banks, which cast a shadow over the earnings season kick-off.

The Nasdaq and the S&P regained lost ground in afternoon trading to close higher. Meanwhile the consumer discretionary stocks put pressure on the indexes throughout the session after morning data showed a December decline in retail sales and a souring of consumer sentiment.

 

 

 

ANALYSIS

 

 

 

RBA: QE to end in February despite Omicron – ANZ

 

“We think the improvement in the RBA’s medium-term economic outlook and the more hawkish stance of the US Fed will lead it to end QE in February. “

“The fact that the RBA sees weekly bond purchases as additional support is critical to this decision.”

“Reflecting the risks to the outlook posed by Omicron, we think the RBA will defer for a few months the decision on whether to start quantitative tightening, ie whether to reinvest the proceeds of maturing bonds.”

 

 

 

CHART

 

 

 

Brent crude oil – Weekly Candlesticks

Source: GKFX / TradingView

Brent crude oil is testing major long term resistance from the late 2018 peak for a second time, possibly setting up a breakout to 3-year highs. - Prepared by Trading Writers*

 

 

 

CALENDAR

 

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/business/futures-slip-after-mixed-results-big-banks-2022-01-14/
https://www.reuters.com/markets/stocks/speculators-increase-net-long-us-dollar-bets-latest-week-2022-01-14/
https://www.reuters.com/markets/europe/dollar-heads-weekly-loss-longs-lose-faith-2022-01-14/
https://www.reuters.com/markets/europe/gold-set-best-weekly-gain-since-nov-us-dollar-yields-ease-2022-01-14/
https://www.fxstreet.com/news/rba-qe-to-end-in-february-despite-omicron-anz-202201140430