By Deepta Bolaky
Wall Street rallied to fresh new highs on Wednesday amid speculations of a possible breakthrough in the coronavirus treatment and upbeat employment reports.
Energy stocks led the gains as oil prices rebounded strongly to the upside after news that a drug has been developed for the 2019-nCov. The WHO later played down such reports that researchers had made a significant breakthrough.
In the FX market, major currencies were mixed against the US dollar. Another batch of strong economic data providing more insights on the US economic health continues to support the greenback.
US Dollar Index
ADP Employment Change was robust at 291k compared to 199k in December while PMI figures came out mixed. The US dollar index which measures the performance of the greenback against a basket of currencies rose above the 98 levels and is currently trading at 98.11.
US Dollar Index (Daily Chart)
Better-than-expected PMI reports were overshadowed by disappointing Retail Sales data in the eurozone area. The EURUSD fell on the mixed data and a strong US dollar. The pair dropped below the 1.10 level leaving the shared currency vulnerable to more losses.
EURUSD (Daily Chart)
Source: GO MT4
Oil prices rebounded on the speculations that a vaccine for the coronavirus has been developed. After bottoming to the lowest level in more than a year, both WTI and Brent Crude rose to $51 and $55 respectively.
USOUSD and UKOUSD (Daily Chart)
Source: GO MT4
Gold made marginal gains despite a stronger US dollar as risk appetite remains fragile. The precious metal is currently trading at $1,555.
XAUUSD (Hourly Chart)
Source: GO MT5
Imports, Exports, Trade Balance, Retail Sales, NAB’s business Confidence, and AiG Performance of Construction Index (Australia)
BoJ’s Masai Speech (Japan)
Factory Orders (Germany)
Economic Bulletin, European Commission releases Economic Growth Forecasts (Eurozone)
Nonfarm Productivity, Jobless Claims, and Unit Labour Costs (US)
|Thursday, 6th February 2020|
Indicative Index Dividends
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