Market News Today
USD tweaks off lows, US Equities flat (Tilray -49.7%, latest Reddit frenzy, DISNEY & Pepsi beat expectations – big gains for Disney+ and lots of snacking at home in lockdowns). Weekly Claims data weak again. Most of Asia closed for Lunar New Year, Nikkei also flat into close. BTC rallied towards 49K – BNY Mellon will accept it as custodian status. Oil slips a tad on reduced forecasts from OPEC+ and the EIA consider the market still over supplied, Gold lost over $20 to $1820 and 10yr yields spiked 1.16% as new 30yr Treasuries were poorly received. Overnight UK GDP beat at 1.0% & Q3 revised up 1% to 16%, which leaves an overall record -9.9% for 2020; other industrial data better than expected too.
Ahead, we anticipate that the dollar will continue to weaken, assuming that the reflation trade sustains on the back of the sharp drop on new positive Covid tests, which is being seen globally, vaccination optimism, and overall good corporate earnings reports, alongside stimulus and the prospect for a pent-up consumer spending spree in developed economies.
Today – CAD Wholesale Sales, UoM Inflation & Consumer Sentiment & FED’s Williams.
Biggest (FX) Mover @ (09:30 GMT) NZDUSD (-0.46%) Broke under 20Hr MA after open this morning, under 200hr MA, S1 and the key 0.7200 now. Faster MAs aligned and trending lower, RSI 30 and testing OS zone, MACD histogram & signal line aligned lower and broke over 0 line earlier today. Stochs into OS zone. H1 ATR 0.0009, Daily ATR 0.0079.
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Stuart Cowell
Head Market Analyst
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