FXPRIMUS Weekly is your comprehensive technical and fundamental trading guide for the coming week! Access the latest news and in-depth technical indicator data, delivered by our market experts each and every week!
With a new week comes new market opportunities. Here’s a recap of what you may have missed, as well as some highlights of the week ahead of us:
Catching you up on last week:
- Coronavirus outbreak rattles equities markets, particularly in Asia. While the World Health Organization declares it a ‘global pandemic’, volatility, as measured by VIX, jumps to 17 (from ~13 just two weeks ago)
- The Bank Of England leaves rates unchanged at 0.75% but fewer ‘doves’ than expected boost GBP. The Fed also leaves its official rate unchanged, but adjust IOER (on Excess Reserves) to 1.6%
- Earnings season is in full swing; AAPL and AMZN doing well while rising costs weight on FB’s share price
- We start to assess possible scenarios caused by the expansion of the virus; factories in China are already shutting down, the movement of both people and goods has been limited and there is even a question of whether there could be an effect on Chinese commitment to the trade deal with the U.S.
- NFP rolls around again, with other important data coming out alongside it, ranging from RBA rate decision, and New Zealand and Canada unemployment numbers
- Earnings continue to roll in, with Google, Philip Morris, and Disney reporting
- The United Kingdom will leave the EU after 47 years a member
Let’s take a closer look…
Each week, we take a closer look at the markets that move, and those you may have missed!
The Aussie is showing an extreme weakness the week before RBA gather to decide on their monetary policy; the ties Australia has with China and the weakness of commodities may also be part of the equation. Very close to multi-year lows around .6670, which will be the level to watch; it is a falling knife right now.
Facebook posted its quarterly financials, reporting a 2.5 billion-user milestone, despite net income rising only 7% (61% for the same period the previous year) and expenses rose by a whopping 34%. This is why we see the drop on January 30th, seeing FB shares plummet to the $200 level, testing the trend line from October and close to 66 EMA. As long as the black line is not broken, FB remains in an uptrend.
US OIL has been down for 4 weeks now, from 65.5 levels. The area between 51 and 51.80 are lows of the last year, and a level to monitor and see whether it will work as a support. RSI is oversold, but all MA are inclined to the downside.
DAX is starting to take a negative shape technically: rejected from ATH around 13600 after a ‘false break’, it is now in the process of losing the trendline sustaining its price for the last 6 months (THU 13250). This could be a bad signal; for the time being, check the range 12900 - 13400 and an eventual retest of the lost uptrend.
Save The Date(s)
Here are the reports, meetings and other fundamentals to follow this week
|February 3rd||01.45||Caixin Manufacturing PMI||CNY|
|February 4th||03:30||RBA Interest Rate Decision||AUD|
|February 7th||13:30||Nonfarm Payroll||USD|
*All times are in UTC
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