Summary:

  • US dollar gains against all its major peers in G10 in early trading
  • Asian equities retreat as Wall Street pauses its outstanding winning streak
  • Oil prices among reasons for a decrease in the US stock markets

Early trading on Wednesday brings us a slight rebound in the greenback as it’s lost momentum earlier this week. The US dollar index is trading a bit more than 0.2% higher at the time of writing gaining the most against the Japanese yen, the Swiss franc as well as the NZ dollar. Even so, the euro is trading clearly above a 1.22 handle despite a try to break this level during the yesterday’s session. In terms of any news worth looking at one needs to mention that the US House Republicans were to discuss a stop-gap government funding bill through to 16 February in order to avert a technical shutdown this weekend. Even as it bodes well on the face of it, it’s unclear whether the plan could be successfully passed in the Senate.

link do file download linkSome signs of fatigue can be found in the EURUSD which could lead to a pullback at least toward an upper boundary of an ascending channel. In turn, when this level is beaten bears would take a stab at pushing toward 1.2150. Source: xStation5

While the US dollar is trying to recoup its latest losses stock markets all around the world have paused their astonishing rally. Benchmarks in Asian pulled back from record highs in response to falls seen in the US equity markets. The Japanese NIKKEI (JAP225 on xStation5) lost 0.35% whereas the Australian S&P/ASX 200 (AUS200) moved down 0.54%. On the other hand the Chinese indices are still struggling to make any gains being just a while before the close. Looking back to the past declines in the US could be ascribed to sliding oil prices which dragged down the energy sector as well as weakness seen in General Electric. The stock went down almost 3% after raising the prospect of breaking itself up and announcing more than $11 billion in charges from its long-term care insurance portfolio and new US tax laws. Apart from this specific stock one needs to mention the energy sector which fell 1.2% as investors decided to cash in on their latest longs. Consequently, the SP500 (US500) slipped 0.35%, the Dow Jones (US30) marked a modest loss 0.04% and the NASDAQ (US100) gave back 0.5%.

link do file download linkAfter making its peak at around 2808 points the US500 witnessed a correction. However, taking a look at the chart above one may suspect that bulls could try to regain control on the market anew as a bullish candlestick has been already drawn just at an upper limit of a channel. Once buyers manage to stay above this point, it could provide fresh fuels to subsequent rises. On the other hand a breakout of the closest support might take the price toward 2735 points. Source: xStation5