ActivTrades’ Market Analysts prepared their daily commentary on traditional markets for January 28, 2020. This is not a trading advice. See details below:
The pound is displaying weakness against both the euro and the dollar, having lost almost 0.4% against both currencies during the early part of Tuesday’s trading session. Investors’ apprehension over there being enough time for the UK and the EU to reach a trade agreement before the end of 2020 is casting a shadow over sterling. The current scenario may be a preamble for what will come later in the year; as the deadline approaches and a no deal scenario once again takes over the headlines, there will be further downside risk for the British pound.
Ricardo Evangelista – Senior Analyst, ActivTrades
After six consecutive trading sessions of decline, oil price finally reacted yesterday by rallying in the final part of the European session. Oil rebounded up to $53.20 without needing the support level at $51.50 but so far, the risk-off scenario continues to dominate and oil was unable to continue its recovery. Technically we will have a positive signal if the price surpasses $53.20, with space for further rallies towards a potential target of $54.80-$55.
Vice versa, a fall below the low reached yesterday at $52, would denote further fragility, opening space for a new test of the key support zone placed between $51 and $51.50.
Carlo Alberto De Casa – Chief analyst, ActivTrades
Shares edged higher in Europe on Tuesday following a mixed trading session in Asia as the “risk-off” mood lost momentum. Investors who took part in yesterday’s sell-off and who sold risky assets at almost any price, without asking questions, are now tempering their trading stance despite both the death toll and the number of infected people in China growing. Traders are aware of the fact that the spread of the deadly coronavirus and its possible impact on growth wasn’t the only driver for markets this week.
Today, investors’ focus is likely to be fixed on US Durable Goods Orders for December, the US CB Consumer Confidence for January as well as earnings from Apple, United Technologies and Lockheed Martin where solid data could give tech shares a solid boost. However, despite possible good news to come on this side, the risk appetite is also likely to be kept down as long as there is no significant improvement in the struggle against Chinese coronavirus.
Pierre Veyret– Technical analyst, ActivTrades