US stocks ended the day higher on Friday, with the Dow gaining 152 points and S&P500 gaining by 12 points. This happened as markets received significant earnings data from key companies. The futures continued to rise after a series of news during the weekend. On Friday, it was reported that Microsoft had won a contract from the Department of Defence. Most market participants expected Amazon to win the deal. There is a likelihood that Amazon will sue to block Amazon’s offer, citing political interference by Trump. On Sunday, it was reported that LVMH had approached Tiffany with an acquisition offer that values the company at more than $12 billion.
Bitcoin’s price rose after a statement by China’s Xi Jinping. On Sunday, Xi praised the technology behind the cryptocurrency. In the statement, the president said that the country must clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology. The PBOC is in the process of launching its own digital currency that will be based loosely on the blockchain technology. This announcement came a few days after the US congress grilled and criticized Mark Zuckerberg, who is in the process of launching Libra.
This will be a busy week for the market. On a monetary policy standpoint, the market will receive interest rates decision from the Russian central bank, Federal Reserve, and Bank of Japan. The market will also receive manufacturing PMI data from China. Another big news item will be the US jobs numbers, which will be released on Friday. Meanwhile, the market will receive quarterly results from some of the biggest companies in the United States and Europe. In total, about 167 companies in the S&P 500 will release their earnings. This is up from the 129 companies that released last week. Among the companies to watch will be Apple, Google, and Facebook.
BTC/USD
The BTC/USD pair rose sharply after positive comments from Xi Jinping. The pair reached a high of 9920 from Friday’s low of 7228. The pair is trading at 9710, which is along the 50% Fibonacci Retracement level on the four-hour chart. This price is above the 14-day and 28-day moving averages while the RSI has moved to above 85. This new optimism may push the pair to test the important resistance level of 10,000.
EUR/USD
EUR/USD pair was little changed in the Asian session. The pair is trading at 1.1080, which is slightly below the 61.8% Fibonacci Retracement level on the hourly chart. It is also below the 14-day and 28-day moving averages. The main line and signal lines of MACD are in the oversold territory. Momentum indicator is below 100. The pair may continue moving lower to test the 50% Fibonacci Retracement level of 1.1060.
USD/CHF
USD/CHF pair rose slightly in the Asian session. This gain was a continuation of an upward trend that was started on October 18, when the pair was trading at 0.9840. On the hourly chart, its price is above the 14-day and 28-day moving averages. The RSI and Stochastic Oscillator has moved above 70 and 80 levels respectively. With no major data from Switzerland and the US today, the pair may continue moving higher.
