USD has biggest weekly rise in 7 months

“In many ways, the stock market is like the weather in that if you don’t like the current conditions all you have to do is wait a while.” – Low Simpson

 

 

 

HEADLINES

 

 

 

• Dollar posts biggest weekly rise in 7 months on rate bets
• Speculators' net long bets on U.S. dollar slip to 21-week low -CFTC
• Gold set for worst week since Nov as rate hike bets boost dollar
• Oil hits 7-year peak on political risks, supply crunch
• Apple's stock racks up biggest one-day gain since July 2020
• S&P 500 Ends Week in Green as Apple Leads Tech Resurgence
• EUR/USD: A test of 1.10 it looks just a matter of time – ING

 

 

 

FOREX

 

 

 

Dollar posts biggest weekly rise in 7 months on rate bets

 

The dollar consolidated gains on Friday and posted its biggest weekly rise in seven months as markets priced in a year ahead of aggressive hikes in U.S. interest rates.

Money markets priced in a 28.5-basis-point interest rate hike in March and as many as 119.5 basis points in cumulative increases by year's end as the dollar steadily rose in a week highlighted by a more hawkish tone coming out of a Federal Reserve meeting.

 

Speculators' net long bets on U.S. dollar slip to 21-week low -CFTC

 

Speculators' net long bets on the U.S. dollar fell to a 21-week low 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 position was $9.87 billion for the week ended Jan. 25, compared with a net long position of $12.59 billion for the prior week.

 

 

 

COMMODITIES

 

 

Gold set for worst week since Nov as rate hike bets boost dollar

 

Gold extended declines on Friday and was set for its worst week since late November as growing expectations for U.S. interest rate hikes pushed the dollar to a multi-month high, making bullion less attractive for overseas buyers. 

Gold prices slipped below its 100-day and 200-day moving averages in the last session, after the U.S. Federal Reserve reaffirmed plans to end its pandemic-era bond purchases and signalled an interest rate hike in March.

 

Oil hits 7-year peak on political risks, supply crunch

 

Oil prices rose to a more than seven-year peak on Friday and recorded their sixth straight weekly gain as geopolitical turmoil exacerbated concerns over tight energy supply. On a weekly basis, the benchmark contracts notched their longest run of gains since October.

 

 

 

STOCKS

 

 

Apple's stock racks up biggest one-day gain since July 2020

 

Apple Inc's shares rallied nearly 7% on Friday in its biggest one-day percentage jump in a year and a half after the iPhone maker reported blockbuster results and teased its metaverse ambitions. The Cupertino, California company's gain reduced some of the losses it has suffered in recent weeks during a broad selloff in growth and technology stocks.

 

S&P 500 Ends Week in Green as Apple Leads Tech Resurgence

 

The S&P 500 delivered a weekly win Friday, as an Apple-led resurgence in tech helped the broader market recover losses from earlier this week when the Federal Reserve signalled a steeper pace of rate hikes.

 

 

 

ANALYSIS

 

 

 

EUR/USD: A test of 1.10 it looks just a matter of time – ING

 

“It looks just a matter of time before 1.10 is tested.”

“Ahead of Thursday’s ECB meeting, we’ll get to see 4Q Eurozone GDP data and the January CPI reading. Consensus expects +0.4% QoQ for the Eurozone figure. Eurozone CPI is expected to turn the corner in January at 4.3% YoY as some base effects drop out. Clearer indications that inflation peaked at 5% in December will hardly push the ECB into a more aggressive stance.”

 

 

 

CHART

 

 

 

Silver – Weekly Candlesticks

Source: GKFX Prime Metatrader 4

XAG/USD just formed a bearish engulfing candlestick pattern after touching the top of a down-sloping triangle pattern. A close below 22 would indicate a new downtrend. - 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-usd-a-test-of-110-it-looks-just-a-matter-of-time-ing-202201281543
https://www.investing.com/news/stock-market-news/apple-shares-hold-up-to-tech-rout-on-strong-results-metaverse-tease-2751818
https://www.investing.com/news/stock-market-news/sp-500-ends-week-in-green-as-apple-leads-tech-resurgence-2752282
https://www.reuters.com/business/energy/oil-rises-headed-sixth-weekly-gain-amid-supply-concerns-2022-01-28/
https://www.reuters.com/markets/europe/gold-flat-set-biggest-weekly-dip-10-after-hawkish-fed-2022-01-28/
https://www.reuters.com/markets/stocks/speculators-net-long-bets-us-dollar-slip-21-week-low-cftc-reuters-2022-01-28/