Gold and crude oil prices soar as Santa Rally continues
Asian stocks were quiet, with most exchanges closed for Boxing day. Stocks in Tokyo and Shanghai were little changed while the Hong Kong and Sydney markets were closed. The coming days will see minimal action from Asian markets as most traders stay away from the market. At the same time, there could be an increase in volume as hedge funds and large money managers wind down their 2019 portfolios. In the fourth quarter, Asian stocks, as gauged by the MSCI Asia Pacific Index rose by 9% as trade tensions between the US and China eased.
US futures pointed to a higher open today, continuing what is known as the Santa rally. Futures tied to the Dow and Nasdaq rose by 30 and 6 points respectively. As with Asia, the volume of trading will be low today. Still, focus will remain in Boeing. On Monday, an aide to a House committee said that messages between Boeing and employees on the development of the Max painted a “very disturbing picture” of concerns about the plane. The company is being investigated by the Justice Department and FAA. Its stock has risen by just 2% this year.
There will be minimal action on the economic calendar today. In Japan, the market will receive construction orders and housing starts for November. The market expects the housing starts to have dropped by -8.1% in November after dropping by -7.4% in October. In the United States, the market will receive the mortgage market index and jobless claims data. This comes shortly after Mastercard released retail sales data. The numbers showed that total US retail sales between November 1 and Christmas Eve rose by 3.4% to almost $880 billion. E-commerce sales rose by 18.8% while physical stores rose by 1.2%. This data shows that US consumers are in a good place.
The EUR/USD pair rose slightly in the Asian session. The pair rose to a high of 1.1095 from a low of 1.1085. The pair has been moving sideways since this week. The price is along the 14-day and 28-day moving averages. The pair may remain at the current levels today as most traders remain on the sidelines.
The XBR/USD pair rose by 30 basis points as the rally that started in October continued. The pair reached a high of 66.28. On the four-hour chart, the pair is trading above 14-day and 28-day moving averages. The RSI has moved above the overbought level of 70 while the momentum indicator has been rising. The pair may continue to soar, as it tries to test the important level of 70.
The XAU/USD pair soared by 20 basis points today. The pair tested the important resistant level of 1500. The price is above the 14-day and 28-day moving averages. The RSI remains above the overbought level of 70 while the MACD has continued to rise. The pair may continue moving upwards as the momentum continues.