Search LOGIN

Oil rises, posts second week of gains on China demand outlook

 

 

“Do not be embarrassed by your failures, learn from them and start again.” — Richard Branson

 

 

HEADLINES

 

 

  • Dollar ends up vs yen, as super easy BOJ policy seems here for a while
  • Gold eases as dollar ticks up, but set for fifth weekly rise
  • Oil rises, posts second week of gains on China demand outlook
  • Wall Street rallies to end higher on Alphabet, Netflix lift
  • Treasury yields rise as investors look to Fed speakers for hints about U.S. economic outlook
  • EUR/USD: New highs and a push on to 1.10 are a matter of time – Scotiabank
  • EURUSD Short Term: Downside favored

 

 

Dollar ends up vs yen, as super easy BOJ policy seems here for a while

 

Profit taking dampened a dollar surge against the yen on Friday, but the buck ended higher and still logged the biggest weekly gain since early December, as the Japanese currency remained on the defensive after the Bank of Japan governor repeated that the central bank will maintain its ultra-loose monetary policy.

Dollar/yen in early trade looked on track for its best day since Dec. 5 after BOJ Governor Haruhiko Kuroda, addressing the World Economic Forum in Davos, Switzerland, on Friday, said the central bank will continue its current "extremely accommodative" monetary policy to achieve its 2% inflation target in a stable, sustainable manner. Its 0.88% gain as of late Friday was still the largest since Jan. 4 and its weekly 1.32% rally from a seven-month low on Monday was the biggest since the week ending Dec. 9.

 

 

COMMODITIES

 

 

Gold eases as dollar ticks up, but set for fifth weekly rise

 

Gold prices edged lower on Friday as the dollar firmed, although hopes of slower rate hikes from the U.S. Federal Reserve kept bullion on track for its fifth straight weekly gain.

Spot gold fell 0.15% to $1,925.33 per ounce, after rising to its highest since April 22 at $1,937.49 earlier in the session. Prices are up 0.4% this week so far.

U.S. gold futures gained $4.30 to settle at $1,928.20.

 

 

ENERGY

 

 

Oil rises, posts second week of gains on China demand outlook

 

Oil rose by about $1 a barrel on Friday and posted a second straight weekly gain, spurred largely by brightening economic prospects for China and resulting in expectations of a boost to fuel demand in the world’s second-biggest economy.

The lifting of Covid-19 restrictions in China is set to increase global demand to a record high this year, the International Energy Agency (IEA) said on Wednesday, a day after OPEC also forecast a Chinese demand rebound in 2023.

U.S. crude gained $1.03, or more than 1%, to settle at $87.64 a barrel.

 

 

STOCKS

 

 

Wall Street rallies to end higher on Alphabet, Netflix lift

 

U.S. stocks rallied to close higher on Friday, as the S&P 500 and Dow snapped a three-session losing streak and the Nasdaq rose more than 2%, as quarterly earnings helped lift Netflix, while Google parent Alphabet climbed after announcing job cuts.

Shares of Netflix Inc (NFLX.O) jumped 8.46% as the streaming company added more subscribers than expected in the fourth quarter and said co-founder Reed Hastings was stepping down as chief executive.

Netflix's quarterly report comes as the technology (.SPLRCT) and other growth-related sectors face hurdles due to the rising interest rate path of the U.S. Federal Reserve and recession worries that have led companies such as Microsoft Corp (MSFT.O) and Amazon.com Inc (AMZN.O) to lay off thousands of employees.

 

 

Treasury yields rise as investors look to Fed speakers for hints about U.S. economic outlook

 

U.S. Treasury yields climbed as investors weighed the outlook for the U.S. economy and remarks from Federal Reserve speakers.

The benchmark 10-year Treasury was trading at 3.488% after rising by 8 basis points. The yield on the 2-year Treasury was last up by more than 6 basis points at 4.177%.

Yields and prices have an inverted relationship. One basis point equals 0.01%.

 

 

ANALYSIS

 

 

EUR/USD: New highs and a push on to 1.10 are a matter of time – Scotiabank 

 

“We expect the ECB to lift rates 50 bps in Feb and March at least and do not exclude a third 50 bps increase in May. Hawkish policy prospects will underpin the EUR.”

“Spot has met better selling pressure on gains through the upper 1.08s but the pattern of trade plus solidly bullish trend strength signals really suggest that new highs and a push on to 1.10+ are a matter of time.”

“Support is 1.0775. Resistance is 1.0890/00.”

 

 

CHART

 

 

EURUSD Short Term: Downside favored

 

Technical View: Long position above 1.0807. Target 1.0885. Conversely, break below 1.0807, to open 1.0782.

Comments: The pair is expected to resume advance after correction.

 

 

 

 

Source: Trading Central 

 

 

CALENDAR

 

 

*Times in GMT

 

 

 

 

Source: FX Street Economic Calendar

 


Footnotes
https://www.reuters.com/markets/currencies/dollar-subdued-growth-concerns-mount-yen-retreats-2023-01-20/
https://www.cnbc.com/2023/01/20/gold-set-for-fifth-straight-weekly-rise-on-fed-slowdown-bets.html
https://www.cnbc.com/2023/01/20/oil-prices-climb-on-hopes-for-fed-slowing-interest-rate-hikes.html
https://www.reuters.com/markets/us/nasdaq-eyes-higher-open-netflix-boost-2023-01-20/
https://www.cnbc.com/2023/01/20/us-treasurys-investors-await-fed-speakers-assess-economic-outlook.html
https://www.fxstreet.com/news/eur-usd-new-highs-and-a-push-on-to-110-are-a-matter-of-time-scotiabank-202301201416

UNLIMITED ACCESS!

The best way to keep track of your accounts. Get notifications
and access your dashboard any time!

Open a live or demo account, make secure deposits or get latest
market updates for free!