Finance World

Currencies

EUR/USD breaks out

Initially, Euro began the weak consolidating, but ended up breaking through some major resistances and trying to make new highs. The trigger for the spike, came after the release of the December ECB meeting minutes, which showed that policymakers expressed confidence in the manner in which the Eurozone economy was moving and could consider a gradual shift in policy relatively soon. Moreover, news that the German Chancellor, Angela Merkel, may have paved the way to a stable coalition government, along with the US economy missing non-economic numbers over the last few days pushed the pair through the 1.21 levels and it ended the week just above the 1.22 region.

2018 continues to boost hope and optimism among investors worldwide, with almost all of the main indices ending the second week of the year on a positive note.

Currencies

1.2100 a critical resistance level

The euro concluded the 1st week of 2018 effectively where it started, but what should make the bulls happy is the fact that it managed to end the week above 1.20, which should give them a lot of hope for the coming week. We had a range of data from the US with the manufacturing PMI data and the ADP employment report coming in stronger than expected. The NFP came in weaker but there was a revision higher in the data from previous month which helped the dollar to be steady and pushed the euro lower to end the week just above 1.20.

The Kingdom of Saudi Arabia’s (KSA) automotive parts aftermarket is undergoing significant changes that are pushing companies to realign their business models with new conditions. Declining demand for new cars, growing competition, and change in brand preferences are opening up fresh business opportunities for parts suppliers, distributors, and retailers.

The first week of 2018 has been positive for most of the regional indices, with investors’ being optimistic about the New Year’s outlook of the region backed by increased oil prices and global growth.