Daily market commentary: US dollar on course for its best week since November 2019

Daily Market analysis

ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for January 10, 2020. This is not a trading advice. See details below:


FOREX

The US dollar is on course for its best week since early November, supported by the easing of tensions in the Middle East and encouraging US economic data. The US Dollar Index, which measures the performance of the greenback against a basket of other major currencies, has so far gained more than 0.7% this week and we may be in for even more upside if the American employment figures, to be released later today, come above the consensus expectation of 164k new jobs created in December.

Ricardo Evangelista – Senior Analyst, ActivTrades

GOLD

Gold is trying to hold the support level of $1,550. In the short-term bullion has lost momentum as investors are less concerned about the US-Iran situation. This strong correction has not changed the main trend, which remains positive. Focus has now moved to NFP data, where any figure below expectation could be supportive for bullion price.

Carlo Alberto De Casa – Chief analyst, ActivTrades

EUROPEAN SHARES

The trading climate lacked clarity on Friday with European shares trading sideways following a trendless Asian session. This rising uncertainty came from two principle sources as traders weighed up how long-lasting the easing of tensions between Iran and the US will last while China raised concerns on the pace of progress on their trade deal with the US. As a result, future price movements have become harder and harder for traders to predict at the end of the first full trading week of 2020. Investors may prefer to limit their exposure while awaiting more clues on where the global economy is headed. It is likely that some sort of response to this question will be given by today’s NFP release, which could trigger another move from the US Federal Reserve.

Pierre Veyret– Technical analyst, ActivTrades

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