Black day for black Gold

By 31/01/2020News
Morning Stock News

Gold   1574,22

EURUSD   1,1023
( -0,07%)

DJIA   28790,50

OIL.WTI  53,05

DAX   13240,70
(+ 0,01%)

3 days ago, in our newsletter, we noted that any rebound in oil would be a great opportunity for new sales. This is exactly what happened in the market. It is not clear which optimists were buying black gold a couple of days ago. But it is clear that they paid in full for their decision yesterday.

The WTI chart of the day

The WTI chart of the day
More and more airlines are completely closing their flights to China. And the planes that fly into the sky are only 10%-20% full. If we add to this a sharp decline in transportation within China itself, the drop in demand looks extremely negative for the oil market.


On Thursday the pair EUR/USD pushed back from the level of 1.10. During the previous 2 days the bears tried several times to push the price lower, but failed to do so neither against the background of the coronovirus, nor against the background of a huge number of open positions towards positive swap. This indicates the fundamental and technical strength of the Euro in the short term.


Australian, Canadian, New Zealand, Russian currencies … the list can go on long. All currencies whose exports are based on raw materials rolled down the stone. After Thursday, when you look at the charts, the technical picture of these currencies, against the U.S. dollar, seems simply terrible. From a fundamental point of view, everything seems no less terrible.
So, what is it? Are these pairs going to keep falling? According to the technical and fundamental analysis – they will fall. What can come to their aid? Traders should not forget, when all in the market wait for the same event, it can not happen. In this case, if everyone who wanted, managed to put on the fall of commodity assets. Well, if new speculators enter the market playing against commodities, nothing can prevent further decline.

What is waiting for us today?

00.30 Tokyo Consumer Price Index in January.
11.00 GDP data for the 4th quarter in the EU
14.30 US personal spending and income data for December
16.00 University of Michigan USA Consumer Confidence Index for December

Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.