Major sell-off on crude oil/Safe-haven assets plunged/DXY significant rebound

Jan 09,2020

Regain Capital

Overnight Reviews:

Gold: -1.13%

Silver: -1.55%

US Index: 0.36%

WTI Oil: -4.39%

NDX: 0.75%

Major sell-off on crude oil

The black commodity pared most of its gains from December’s rally while being sold-off by investors following easing of Middle East tensions and unexpected buildup in US crude inventories. President Trump’s statement on not needing oil from Middle East spiraled concerns of larger production by the country, sending oil back to its $60 handle.

Safe-haven assets plunged

Safe-haven underwent large sell-off following investors’ risk-on mode, sending precious gold down by more than $50 from its highest level reached at $1,610. US President Donald Trump told the media that Iran seems to be standing down, hinting that geopolitical tensions between US-Iran may fade as long as Iran doesn’t make a move.

DXY significant rebound

Dollar index was yesterday’s market winner, following de-escalation of Middle East tensions and upbeat jobs data from the region. US ADP Nonfarm Employment data surprised the market after hitting its highest level since May 2019. Market preference quickly shifted from safe-haven into the dollar, with expectations of phase one signing next week.

Main Events Today GMT +8

08:30 AUD Trade Balance

17:30 GBP BOE Gov Carney Speaks

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Major sell-off on crude oil/Safe-haven assets plunged/DXY significant rebound

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