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Markets are looking for direction, US on a holiday and the central bank week is starting

New week begins quietly with liquidity low as Americans rest today for Martin Luther King Jr. Day.

However, the apparent calm was disturbed by the news surrounding the oil. Libya’s military opposition, which controls several ports, has stopped oil exports at 800,000 barrels per day (mainly for Europe), which prompted the immediate opening of the WTI with nearly 50 cents a gap. The situation is not yet mastered. This number of barrels is still threatened. Gap is not covered yet, and the 50-day daily creep plays the role of resistance. We expect WTI and BRENT prices to remain high because of the ongoing tensions in Libya.

Even with resources, platinum is the leading precious metal that pulls in gold and silver. The palladium rally is starting to carry over into platinum as well, with the price peaking on January 25, 2018 at $ 1,030. We will expect the price to adjust in this zone before the rally resumes because of the $ 1030 zone at which the price meets resistance.

Today there is some risk off and withdrawal of risky assets, so we expect gold today, along with silver, to stay in green territory. With $ 1560 in gold, there is a difficult area to drill.

On the FX front, the franc is inferior, as is the yen. In the Japanese yen, the area at 110.209 remains the upward movement. Buyers continue to put serious pressure there. The Swiss Franc stabilized in the zone at 0.96827, despite weaker early indications for European futures. The pound remains with minimal changes but in red territory, holding below 1.3000. The euro remains strong against the US dollar, with the price currently trying to keep above 1.10960.

Today, we expect the US dollar to continue retreating due to lack of economic data on the calendar for the US and Europe. Risky assets are also showing a retreat, albeit with minimal changes, so today the markets will look for direction and the session itself is expected to be quieter.

The Davos Climate Conference is also starting today, with markets set for the whole week, with several central bank decisions. Today is the BOJ, Wednesday is the BOC and Thursday the ECB.


 Trader Martin Nikolov


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