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Silver hits $30, USD/JPY 105

EUR/JPY – Daily Candlesticks
Source: GKFX / MT4 (February 2, 2021)

EUR/JPY has made a shallow pullback from the 127-resistance level for a another higher low, suggesting a possible upside breakout if the uptrend is to continue.
 

TAKEAWAYS


•    Silver builds on Sunday gap higher to reach over $30 per oz and 8-year high 
•    GameStop stock drops as much as one third after short interest is significantly reduced
•    Stock markets rebound strongly from worst week since October
•    Markit US manufacturing PMI hits record high
•    Euro drops after IMF cut Eurozone growth forecasts after disorganised vaccine rollout
•    USD/JPY hits big 105 level
•    Oil leaps 2% ahead of rising winter fuel demand in US snowstorm
•    DAY AHEAD: RBA rate decision, Eurozone Q4 GDP
 

GURU WISDOM


“In the short run, the market is a voting machine. But in the long run, it is a weighing machine.” – Ben Graham
 

MARKETS


*Daily closing price
↘ EUR/USD    1.2064        (-0.48%)
↘ GBP/USD    1.3664        (-0.24%)
↗ USD/JPY    103.77        (+0.22%)
↗ S&P 500    3773.86    (+1.61%)
↗ Hang Seng    28,892.86    (+2.15%)
↘ Gold        1861.08    (-0.10%)
↗ Oil (Brent)    56.34        (+2.60%)
↗ Bitcoin    33,955        (+2.46%)
 

NEWS

GameStop


GME stock tanked over 20% as the focus of retail traders from WallStreetBets on Reddit appeared to switch to silver. AMC was up 6%, while other most-shorted stocks were a mixed bag of gains and losses. Figured showed that short interest in GameStop fell to 39% from 140% last week, meaning the short-squeeze is less able to function.
 

Indices recover


Amazon and Alphabet shares led a rally on Wall Street before reporting earnings this week. Any forced selling from hedge funds appeared to have subsided in the decline last week. Renewed discussion of US government covid stimulus talks appeared to add to positive sentiment.
 

Eurozone growth


The IMF poured more cold water on last year’s euro rally, pushing EUR/USD back to its lows of the year-to-date. The agency cut its eurozone growth forecast by 1% to 4.2% attributing the downgrade to the problems the EU has faced with securing supplies of covid vaccinations and rolling them out across member countries. The delay in vaccinations means the economy will be slower to reopen.
 

USD/JPY 105


The weak euro added further gains to the dollar, helping USD/JPY which hit 105 for the first time since mid-November, while EUR/JPY dipped.
 

Oil jumps


The price of oil gained 2% as Americans braced for a major snowstorm on the North East and the extra fuel demand it will create.
 

DAY AHEAD 


*Times in GMT
03:30 – Australia RBA Interest Rate Decision [0.1 % Exp vs. 0.1 % Prev] 
10:00 – Eurozone Gross Domestic Product s.a. (QoQ)(Q4) Prel [-1.2 % Exp vs. 12.5 % Prev]
 

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