› Market review, January 22 – January 26, 2018

Market review, January 22 – January 26, 2018

Gold

On Monday, January 15, gold reached its peak since September of the previous year. And after that It tried to break through the $ 1344 level again, but as we see, unsuccessfully and then returned to the level $ 1333 again and again. Positive economic data from the US strengthened the US currency on Thursday, but on Friday, because of the probability of the government work stop, the dollar's price fell, thereby supporting gold. But this situation in the US Senate happens so often that one should not expect any significant consequences.

The most likely there is going to be decline in the price of the yellow metal due to its high overbought. In any case, you should analyze the support / resistance lines when opening positions. In case there will be additional drivers to weaken the dollar, and when the situation on the world scene is heated, there is a possibility of a rebound of gold and its movement back to the level of $ 1344.

Market review, January 22 – January 26, 2018

Oil

After setting next record price, oil began to decline to the level of $ 63. The main impact here was the restoration of the development of oil shale deposits in the United States.

The higher oil price is, the faster the US oil producers are activated, which are interested in oil production, provided that it can be sold for a higher price. The main factor in price growth was the OPEC their allies agreement to limit oil production quotas in 2018, besides, high demand for black gold was caused by the bad weather.
The previous week result on crude oil reserves showed a significant reduction in reserves. On the upcoming - they are expected to replenish. Accordingly, it will be possible to talk about, at least, a short-term price drop.

Market review, January 22 – January 26, 2018


EUR / USD

Last week was for the main currency pair of the financial market mostly corrective.

New Trump’s tax reform, provides clearance for market participants. The main trends in the market will be this week, the Europe interest rate for, and the US GDP report.

If we talk about the interest rate of the Eurozone, then very few people believe that it increase, because it can bring to collapse, but the market will more follow the rhetoric of the head of the ECB Mario Draghi, and his further plans to cut the QE program.

Also, analysts talk about probability of the weak US GDP data, the weakening of the american currency will cause the overall health indicator of the economy to drop.
Euro's dominance is expected in the first part of the weak, due to the Super Mario performances. After that, around 1.2100 level there will be good entrance point for down positions.

Market review, January 22 – January 26, 2018


Bitcoin
The opinion of market participants on the crypto-currency future is divergent. Europe has excluded a variant to introduce Bitcoin as a payment method as the asset is too unpredictable. And at this stage, regulators around the world limit purchases and circulation of crypto-currencies.

China has already taken measures to limit, and ban the crypto currency and crypto-farms. Following him, one of the leaders in capitalization and the number of crypto-instruments in South Korea, drafted a bill on the prohibition of crypto-instruments, which significantly hit the price of Bitcoin, and the stability of the market itself as crypto.

In just a week Bitcoin lost about 30% of the price, it's more than $ 4000, it creates a certain panic, and if the situation does not change, then this week we will see it to settle below $ 10,000.

Market review, January 22 – January 26, 2018


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