MARKETS McKenzie: US Index tests 92.50/70 as expec

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Us index tested 92.50/70 as scheduledGold retreated 1303/06 as safe-haven demand weakenedOvernight offshore, the dollar breached the 92.20/30 resistance and duly tested the 92.50/70 level further upward. Fed policymakers are keeping a close eye on inflation, putting the focus back on Friday's CPI data. Gold's gains were weighed down by a pullback in risk aversion amid signs of easing tensions on the Korean Peninsula.Eur/USD closed at 1.1967; GBP/USD closed at 1.3567; Aud/USD closed at 0.7839; Usd/JPY closed at 113.07; Usd/CAD closed at 1.2418; Usd/CHF closed at 0.9770. Spot gold settled at $1,320.58 an ounce; Comex gold settled at $1,320.40 an ounce; Spot silver closed at $17.11 an ounce; Futures settled at $17.144 an ounce on Comex; NYMEX crude closed at $61.73 a barrel; Brent crude settled at $67.78 a barrel.The euro zone unemployment rate fell to 8.7 percent, the lowest level since 2009, but the euro did not get a boost, continuing its previous decline and briefly touching the lowest level against the dollar in nearly two weeks at $1.1914.The euro has risen in recent weeks in anticipation of a shift in ECB monetary policy this year, hitting a near four-month high of 1.2089 against the dollar on Thursday, but weakened gradually after weaker-than-expected euro zone consumer price data on Friday.Omer Esiner, chief market analyst at Commonwealth Foreign Exchange, said, "The optimism surrounding the euro has faded. "While data continue to point to strong momentum in the euro area at the end of 2017, inflation remains subdued, which will ultimately prompt the ECB to normalise policy at a very, very cautious pace."On the news, geopolitical risks have cooled recently. Now that the unrest in Iran has subsided, the positive tone on both sides after the inter-Korean talks has sent a signal of easing tensions on the Korean peninsula. North and South Korea agreed on Tuesday to hold more inter-Korean talks to improve ties. South Korea's foreign ministry said it would consider temporarily lifting sanctions against North Korea if necessary. The two countries decided to reopen an inter-Korean military communication line in the West Sea from Wednesday to discuss plans for the next round of talks.U.S. stocks hit another record high on Tuesday as investors remained optimistic about the market heading into corporate earnings season. Among them, the Standard & Poor's 500 index hit a record high and the index had its best start to a year since 1987. The Dow Jones Industrial Average rose 102.80 points to 25,385.80 and the Nasdaq Composite Index rose 0.1% to 7,163.58.Looking ahead, this week is the first full trading week of 2018, and investors will have a number of important economic data, including December US retail sales, which will help investors judge the state of the US economy, but analysts pointed out that the most attention this week is the two US inflation-related reports: Producer price Index (PPI) on Thursday and consumer price Index (CPI) on Friday, while the latter is the most important and could trigger wild market moves.The triangle convergence tail of the golden hour chart breaks down, and the current effective support is below the 1303/06 area, and the bulls can consider buying light positions after entering the area, and the stop loss of $4-5 is enough. Rebound target first look at 1:2 profit and loss ratio. If the price breaks the support of 1306/03, it may open the door to fall towards 1275/78 and 1265/68.Eur/USD recorded 3 consecutive negative sessions, keeping a close eye on the support below around 1.1880. If the region stops falling and stabilizes, you can try to go long on the basis of a stop loss of no more than 35 points. If it breaks below here, the price may fall further towards 1.1715/50.
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