English (India)
14
Jan

EU Trade Balance, U.S. Retail Sales, Industrial Production

calendar 14/01/2022 - 10:15 UTC

While the U.S. dollar traded overall weaker against other major currencies as seen in the performance of the USDX on Thursday, against emerging market currencies the dollar performed quite well with pairs like the USD/RUB, USD/TRY and USD/INR trading higher.

A reversal in the crypto markets pushed Bitcoin again to the lower $42k levels after briefly trading close to $44.5k on Thursday, while Ethereum came down from $3.4k towards $3.2k. One of the best-performing cryptos by Friday morning was Dogecoin as it traded briefly even above $0.21 and gained at times more than 40% since the beginning of this week.

Stock market indices were under pressure following the sell-off in the U.S. markets with other regions also trading in the red like the Japan 225 (Yen) or the Germany 40 index trading lower.

On Friday U.S. data on retail sales, import and export prices as well as industrial production, capacity utilisation and business inventories data can be expected.

EUR/USD

As the dollar continued to weaken, the EUR/USD pair reached a new two months high trading at times above 1.148 even though the euro itself was far from outperforming these days, trading weaker in the EUR/JPY and EUR/CHF pairs.

Italian industrial production numbers were unexpectedly positive for November, rising by 1.9% after a 0.6% drop in the month before. French consumer price index (CPI) statistic was meanwhile stable at 2.8% y/y growth in December as was already the case in the previous reading.

On Friday morning eurozone trade balance data for November can be expected.

EUR/USD

Gold

Gold reached a new high for this week by Friday morning, recovering completely from the small losses on Thursday, which was the first time in five days when prices for gold declined. As at the same time the dollar depreciated against other major currencies the performance of Gold (EUR) for the week trading by Friday morning up by 0.8% is quite less impressive compared to the gains of gold valuated in dollar amounting to 1.75% and thus almost recovering all the losses from the previous week.

Silver and platinum traded relatively similar to gold as they settled lower on Thursday only to rebound by Friday morning, while the downside in palladium continued with no recovery in sight so far as the price fell clearly below $1,900 for a troy ounce.

On Friday the weekly Commitment of Traders (COT) report by the U.S. CFTC will be released, which shows among other information the net positions of traders in gold, silver, copper and other futures.

Gold

WTI Oil

After a strong rally in oil prices on Tuesday and Wednesday a moderate retracement set in on Thursday. Still, on a weekly basis oil is set to end the fourth week in a row higher, gaining roughly 17% over this four-week period.

A Bloomberg article quoting the International Energy Agency (IEA) indicated that the impact of the Omicron variant on the oil markets was smaller than anticipated and that demand remains stronger than what many have thought it would be at this point. The IEA is set to release its Oil Market Report next Wednesday (19 January).

On Friday the weekly U.S. Baker Hughes Oil Rig Count report will be published. Last week only a small increase in activity was reported up from 480 to 481 operating oil rigs.

WTI Oil

US 500

Stock markets were overall positive in the first half of the day on Thursday until a sell-off started around 3 PM GMT pushing indices like the US Tech 100 or US 500 lower at a fast pace and erasing all the gains of the previous three trading days of this week.

While bank stocks managed to trade relatively steady (US Banks ETF +0.32%) ahead of the starting earnings season where on Friday Wall Street banks like Wells Fargo, JPMorgan Chase and Citigroup are publishing their results, other sectors especially biotech (US Biotech ETF -2.66%) and tech (US Technology ETF -2.63%) were under pressure.

Despite the bearish market sentiment airline stocks closed noticeably higher with strong gains in United Airlines (+3.46%) and American Airlines (+4.38%), while Delta Air Lines (+1.69%) was also up despite indicating that the increased number of Omicron variant infections will make the company lose money in the first quarter. The $9.47 bn. sales in the past quarter was a better performance than anticipated while still clearly below the results seen in 2019 before the pandemic started.

US 500

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