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Market Wire Update: Friday’s Early View

|Includes: GLD, SPY, UDN, USO, Invesco DB USD Bull ETF (UUP)

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Market Wire Update:


Friday’s Early View

Forex Trader Note:
Overnight markets reversed the Usd selling seen in trade on Thursday, on the last day of trade for January options. The equity markets are holding higher, and gold is running flat as oil traders test support once again at $79.50.

The near-term trends are short Usd, with the exception of Usd/Jpy that is trying hrad to reverse the selling that hit after U.S. economics disappointed. Take care with anything taken on Friday, the markets are at a swing point. The U.S. calendar is busy enough to create ripples at 08:30 EST, but by then, the market may not have enough momentum to move too far.

Red Flag Economics:
05:00 EST Eur CPI Exp 0.9%, Prev 0.9%
05:00 EST Eur Core CPI Exp 1.0%, Prev 1.0%
08:30 EST Usd CPI Exp Exp 0.2%, Prev 0.4%
08:30 EST Usd Core CPI Exp 0.1%, Prev 0.0%
08:30 EST Usd Emp Manufact Index Exp 11.2, Prev 2.6
09:15 EST Usd Industrial Prod Exp 71.9%, Prev 71.3%
09:55 EST Usd Consumer Sentiment Exp 73.8, Prev 72.5

Dollar Index: The dollar index found relief from the previous session's selling, and on the day of January options expiry has split the major pairs. Most currencies are trading at their daily chart main simple moving average areas, as the market divides itself into euro, swissy and aussie selling, cable and cad consolidation, and Japanese yen buying. The near-term trend is lost.

S&P Futures: The European cash markets held support overnight, and S&P futures traded in mixed fashion, forming a swing point high in the 1145.00 area. The regional European indexes do not look interested at all in moving things too far, either way. S&P futures trade awaits a heavy U.S. calendar, starting with CPI at 08:30 EST.

Crude Oil: Oil trade reversed from the selling seen in the previous sessions, and in doing so formed a  4 Hour chart swing point low at 78.25 that is managing to hold in overnight trade. The oil inventory numbers from the U.S. this week were stronger than had been expected, and that allowed some speculative interest in crude oil trade to bank profits. A weekly close above $78.25 may help contain any Usd buying.

Gold Bullion:
Gold Bullion trade has moved sideways in recent sessions, and looks to have found fair value around $1125-$1150 an ounce. A break higher or lower from those areas on a weekly chart basis may allow for a test of support or resistance at 1110 or 1175. It looks as though gold has removed itself from the daily ebbs and flows of dollar index trade, and instead is trading on its own merits as a valuable asset class once again.



Disclosure: No positions