Daily Markets Broadcast 2020-01-08

Daily Markets Broadcast

2020-01-08

Gold rallies as Iran retaliates

Early morning news that Iran has attacked a US base in Iraq has sent equities lower and the usual safe haven plays, gold and the Japanese yen higher. Oil is little changed.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index has fallen the most in three months so far this morning after news of the Iran attack
  • The 55-day moving average, which has supported prices since October 10, has moved up to 27,887
  • The run-up to Friday’s non-farm payroll report begins with the release of the ADP employment change for December. It’s expected to jump to +160k from +67k in November. Fed’s Brainard is also scheduled to speak.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index is lower this morning following reports of the Iran attack
  • The index looks set to close below the 55-day moving average at 13,125 for the first time since October 8
  • German factory orders probably rose 0.3% m/m in November, the latest survey suggests. That’s a sharp turnaround from October’s -0.4%.

XAU/USD Monthly Chart

Source: OANDA fxTrade

  • Gold prices surged in early trading amid safe haven flows into the precious metal. Gold jumped the most since August 27 and extended the current bullish move to an 11th consecutive day
  • Gold reached the highest since March 2013 in the latest surge and breached the 61.8% Fibonacci retracement of the September 2011 to December 2015 drop at 1,594.08
  • Iran has reportedly launched a second wave attack on the base, according to local news agencies. CNN reports that US President Trump will address the nation soon.

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.