Date: 22 Jan 2020

FOREX

In the absence of any significant news or major data, the foreign exchange market appears to be driven by a resurgence in risk appetite that emerged during the early Wednesday session in Asia and is spreading globally, with the DAX hitting an all-time high this morning. The bullish sentiment is driven by a positive earnings season so far, as well as by the reassurance provided by the Chinese authorities in relation to the handling of a virus outbreak, which some believe could potentially trigger a global pandemic. The optimism on markets is reflected in the weak performance of safe-haven currencies, with the yen and the Swiss franc both losing ground to the euro, especially the latter, which is down by 0.35% against the single currency.

Ricardo Evangelista – Senior Analyst, ActivTrades


GOLD

Gold is once again moving to trade just above $1,550 as it battles against the persistent risk-on mood on stock markets and the strength of the US dollar. Despite this, the support level of $1,550 is still intact, with the price only falling below that level yesterday for a couple of hours before rebounding. Gold’s success in holding onto this key level confirms the strong appetite of investors for bullion currently.

Carlo Alberto De Casa – Chief analyst, ActivTrades


OIL 

WTI in a consolidation phase after a strong December with the price slowing down to test the support level of $57.70-$58 once again. Despite the risk on seen across markets, the barrel was unable to hold the gains achieved in the final weeks of 2019. The US-Iran situation is not worrying markets at this stage, while the signing of the Phase One deal between the US and China was largely discounted and was unable to further lift the oil price.

Carlo Alberto De Casa – Chief analyst, ActivTrades

 

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