The EUR/USD makes a bullish breakout following hawkish comments from the ECB on interest rate hikes, in a weak Dollar environment.
- The EUR/USD currency pair has risen to trade above $1.09 at a new 9-month high, after ECB member Klaas Knot states that he foresees ECB rate hikes of 0.50% in both February and March, with hikes continuing over the following months also. The rise is helped by a weak US Dollar. The GBP/USD currency pair briefly traded earlier at a new 7-month high, but quickly reversed to trade back below its key resistance level at $1.2437.
- In the Forex market, the Euro is clearly the strongest major currency, while the Japanese Yen is the weakest.
- The long-term bullish trend in precious metals such as Gold and Silver remains valid. These assets are attractive to long-term trend traders in the long direction right now, as higher prices here are likely over the coming days. Gold briefly made a new 9-month high Friday above $1935.
- Asian stock markets have begun the week on a mostly positive note, with the Hang Seng Index and the Nikkei 225 Index both higher by more than 1% on the day.
- It is a public holiday in China all week due to the Chinese New Year.
- Daily confirmed new global coronavirus cases decreased last week for the fifth consecutive week, but there are serious doubts over the veracity of China’s official statistics, which almost certainly dramatically understate new coronavirus cases.
- Total confirmed new coronavirus cases worldwide stand at over 673.3 million with an average case fatality rate of 1.00%.