Jan 15


  • BY: Donal Kelly
  • January, 15th, 2016 20:15 +00:00

Good evening,

another selloff in China, followed by US macro data below the consensus triggered another risk reversal session, and precious metals and a few of agricultural commodities are the only assets that showed positive market sentiment. The Chinese market is in a bear market and in US tech stocks are underperforming other gauges. The DJIA is losing 377.58 points at 16,001 (-2.31%) and the Nasdaq Composite is down 127.8 points at 4,487.2 (-2.77%).  Gold is up 15.7$ at 1,089.3 $/oz.  Crude Oil is oversold on the weekly chart but made a divergence on the RSI indicator, thus the commodity may rebound faster than indices. Crude Oil is trading at 30.63 $/barrel (-5.01%).

In the FX market mixed performance of the US dollar against other majors. The Euro is gaining against the US dollar confirming reversal carry trade that may lift the shared currency to test 1.12 against the Greenback. EurUsd is trading at 1.0911 (+0.44%) and GbpUsd is at 1.4622 (-1.04%): the British Pound is weak against the Greenback and the US dollar is losing against the Euro, thus EurGbp is soaring today, and the rate is trading at 0.7635 (+1.52%). The important psychological level 0.8 is the next relevant resistance.  Difficult situation for Japanese policymakers as the Yen is soaring and the Nikkei closed down today as well after a positive opening.  Weakness on both Kiwi and Aussie dollar, and UsdCad soared to a level that was traded the last time on March 2001.

On Monday will be celebrated in US the Martin Luther King Day thus the news flow will be reduced a bit, but will be important to follow the Chinese House Price Index data at 01:30 GMT.

(20:10 GMT)