EUR/USD 1-month low

GURU WISDOM

“It’s much easier to learn what you should do in trading than to do it. Good systems tend to violate normal human tendencies.”  - William Eckhardt
 

MARKETS

*Daily closing price
↘ EUR/USD    1.2078        (-0.64%)
↘ GBP/USD    1.3586        (-0.74%)
↗ USD/JPY    103.11        (+0.08%)
↘ S&P 500    3768.25    (-0.72%)
↗ Hang Seng    28,573.86    (+0.27%)
↘ Gold        1941.88    (-1.07%)
↘ Oil (Brent)    55.10        (-2.34%)
↘ Bitcoin    35,860        (-0.54%)
 

NEWS

 

Dollar up again

The dollar spiked higher on Friday, adding to midweek gains. The US currency is attempting to bottom near 3-year lows. EUR/USD fell under 1.21 while GBP/USD was back under 1.36. Some nerves have crept back into the market after the Capitol protests while traders sold the news of Joe Bidens new stimulus plan. Traders have been selling the dollar ahead of expected rising debt issuance to pay for the Biden stimulus. 
 

Bitcoin 36k

Bitcoin has held above the $35k level but has failed to exceed the record highs despite rising public interest in the cryptocurrency. Google searches for ‘bitcoin’ now match the previous peak in 2017, which corresponded just before the BTC price topped out. The logic goes that crypto smart money is offloading their bitcoin to new buyers at high valuations.
 

Cyclicals

The big move into cyclical stocks took a break on Friday following weak bank earnings and slumping oil prices while the 10-year Treasury yield pulled back from its highest level since March. Wells Fargo and Citigroup saw their stock slide 7.8% and 6.9% respectively after poorly-received Q4 results. More big US banks report earnings this week including Goldman Sachs. A pullback in the price of oil also weighed on oil stocks.
 

DAY AHEAD 

*Times in GMT
02:00 – China Gross Domestic Product (YoY)(Q4) [6.1 % Exp vs. 4.9 % Prev]
02:00 - Industrial Production (YoY)(Dec) [6.9 % Exp vs. 7 % Prev]
02:00 - Retail Sales (YoY)(Dec) [5.5 % Exp vs. 5 % Prev]