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    Weekly Market Snapshot - January 09, 2016: Forex, Equities, Commodities

    January 09, 2016 - (Weekly) FX Strength, Pivot points, Support, Resistance & Fibonacci retracement levels for Currency pairs, Dollar Index, Global Stock Indices & Commodities offered by WorldWideMarkets and a Chart of Interest. {updated end of week}

    • Currency Performance - Weekly(Strongest to Weakest)FX_Strength_010916.png
    Market Best Performer Worst Performer Comments
    Forex EURAUD AUDJPY Yen and Euro strengthened while the antipodeans got hammered as risk aversion was the key theme for the first week of 2016. The culprit was China or rather Chinese officials who felt they could exert control over financial markets as easily as they do over the country. The initial spark was the weaker than expected PMI report, released at the beginning of the trading week, that unnerved investors. Though this was disappointing, it was nothing out of the norm as Chinese economic data had been anemic for a while now. Then the powers-that-be decided to display their full intellectual capabilities for the world to see. First, they resumed the practice of devaluing the Yuan by "fixing" it sharply lower. This depreciation led to the spark becoming a flame as investors, worried that conditions might be worse than expected, headed for the exits en masse.
    Equity India China Their second move, and probably the one that cemented their "genius" status, was to impose very tight (5% sell off - temporary halt to trading / 7% sell off - close trading for the day) circuit breakers (which were tripped TWICE !) to stem the tide of people selling their stocks. This had the unintended (TWICE..hmm! why is it that throughout history an incredibly high percentage of "genius moves" have deleterious results?) consequence of turning the flame that was a jittery market into five alarm fire that was full blown market panic. Every major global equity index ended the week appreciably lower with the worst performer being the second largest economy in the world. Even another robust US NFP report could not reverse the negative sentiment as the week, mercifully, came to an end. Happy 2016 indeed !
    Commodity Natural Gas US Crude Oil (WTI) Oversupply and diminished demand projections saw crude oil fall every day of 2016 (how often can that be said!) as it ended the week over 11% lower. Natural Gas rose on colder weather forecasts.

    • Pivot Points & Fibonacci Retracement Levels - Weekly
      A technical analysis indicator used to try and determine the short-term trend of the market. The pivot point is the average of the high, low and closing prices from the previous trading period. If the market on the following period trades above the pivot point it is thought to be exhibiting bullish sentiment, whereas trading below the pivot point is seen as bearish. The Fibonacci retracement is the potential reversal of a financial instrument's original move in price.(click to enlarge)FOREX_010916_w.png
    • Chart of Interest - US Crude Oil (WTI) Weekly(click to enlarge)Chart_CrudeOil_W_010916.png
    • Global Stock Indices, Commodities & USD -vs- Majors - Weekly(click to enlarge)DOLLAR_010916_w.png

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