Market Analysis

The US dollar is on course for its best week


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 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


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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