Safe Haven Assets on Demand, Equities in The Red
Gold prices trade 1.73% higher at 1,579 close to seven-year highs. The outlook is clearly bullish now as investors flock to safe-haven assets.
Asian indices finished in the red the first trading day of the week amid growing tensions in the middle east after the killing of General Soleimani in Baghdad by an American airstrike.
The Nikkei 225 in Tokyo finished 1.91% lower at 23,204, the Hang Seng index ended 0.79% lower at 28,226. The Singapore FTSE Straits Times ended 0.62% lower at 3,218, while the Shanghai Composite finished 0.01% lower at 3,083.
European equities sharply decline in the opening. CAC40 gives up 1.11 per cent at 5,977 while the FTSE MIB in Milan is 1.48 per cent lower at 23,351. In London, the FTSE 100 is 0.98% lower at 7,547, while the DAX is leading to the downside giving up 1.61% at 13,006.
In commodities, the crude oil prices rally up to $63.81 adding over one per cent as traders digest the recent developments in the Gulf region. Brent oil also adds 1.49% at $69.62 per barrel. Gold prices trade 1.73% higher at 1,579 close to seven-year highs. The outlook is clearly bullish now as investors flock to safe-haven assets. The immediate resistance stands at 1,587.55 the daily high, while the support is at 1,447 the recent low.
In cryptocurrencies markets, Bitcoin trades 2.46% higher at $7,537 hitting the daily low at $7,287 and the daily high at $7,571. Bitcoin momentum has turn positive now as the crypto pair trades above the 50-day moving average. First support for BTCUSD stands now at $6,400 recent low, while the next support level holds at 6,000 round figure.
On the other hand, resistance stands at 9,925 high and then at 10,000 round figure. Ethereum ETHUSD trades 4.91% higher at 141.36 with capitalization now at 14.19 billion, on the upside resistance for Ethereum stands at 200 recent high while the support stands at 117.09 the previous week low. Litecoin (LTCUSD) is trading 0.43% lower at 41.31. The crypto market capitalization is $190.88 billion.
In the Lookout: The China services purchasing managers’ index came in at 52.5 in December, below the seven-month high of 53.5 in the previous month.
Trading Perspective: In forex, the US dollar index trades 0.27 per cent lower at 96.63, the Aussie is 0.02% lower at 0.6943 against the US dollar. NZDUSD trades 0.11% higher at 0.6669. USDCHF is 0.309% lower at 0.9692.
GBPUSD trades 0.48% higher at 1.3140 as we are getting closer to the Brexit deadline on January 31st, 2020. Immediate support for the pound against the US dollar now stands at 1.2578 low which if broken, might push the pair further down towards 1.20. On the upside, the first resistance will be met at 1.3511 recent high.
EURUSD trades 0.37% higher at 1.1197 as the pair’s short term momentum is positive now. The first resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1156 today’s low and then at 1.10.
USDJPY is trading 0.02% lower at 108.09, having hit the daily low at 107.76 and the daily high at 108.17. USDJPY will meet support at 105.43 the low from August 22nd. On the upside, initial resistance for the USDJPY now stands at 109.69 recent high.
USDCAD trades 0.19% lower at 1.2970, as the loonie boosted by stronger crude oil. The pair will meet first support at 1.2950 the recent low while the next support level stands at 1.29 round figure. On the flip side, resistance will be met at the 1.3066 the high from December 31st.
Reporting by Nikolas Papas. Filed 6 January 2020, 16:22 GMT.
