News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Earnings in focus https://t.co/iQZ3NTgriW
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in AUD/JPY are at opposite extremes with 63.58%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/yPYfN7Ik9C
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 1.57% Oil - US Crude: 1.01% Gold: 0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/X7kHJDLKkY
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.46% 🇨🇭CHF: 0.42% 🇦🇺AUD: 0.41% 🇨🇦CAD: 0.29% 🇳🇿NZD: 0.20% 🇯🇵JPY: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/NQsgL7dUy5
  • Ever wonder if there are other chart types that can be used for technical analysis? HLOC charts are discussed in the following article as well as their pros and cons. Learn more here: https://t.co/qV3c7a4YR3 https://t.co/Yqu2heS6Wz
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: US 500: 0.42% Wall Street: 0.37% Germany 30: 0.19% FTSE 100: 0.14% France 40: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/LCfrU0DwEH
  • France 40 IG Client Sentiment: Our data shows traders are now net-long France 40 for the first time since Dec 22, 2020 when France 40 traded near 5,477.70. A contrarian view of crowd sentiment points to France 40 weakness. https://www.dailyfx.com/sentiment https://t.co/58P7y6uEE0
  • Coming up in 20'. Please join me if you're free by clicking the link below https://t.co/629fFCZnuC
  • 💶 ZEW Economic Sentiment Index (JAN) Actual: 58.3 Previous: 54.4 https://www.dailyfx.com/economic-calendar#2021-01-19
  • 🇩🇪 ZEW Current Conditions (JAN) Actual: -66.4 Expected: -68.5 Previous: -66.5 https://www.dailyfx.com/economic-calendar#2021-01-19
Silver Price Outlook: XAG/USD Lower as Increased Direct Payments Hit Roadblock

Silver Price Outlook: XAG/USD Lower as Increased Direct Payments Hit Roadblock

Thomas Westwater, Contributor

Silver Price, U.S. Stimulus, Covid, Sentiment - Talking Points

  • Wall Street trading ends lower Tuesday after Senate stimulus breakdown
  • Silver prices drop despite weaker Greenback as inflation expectations ease
  • Covid-19 variant from the U.K. identified in the U.S. as hospitalizations hit new record
Advertisement

The S&P 500 and Dow Jones Industrial Average closed in the red after making fresh all-time highs earlier this week, with both indexes dropping 0.22%. Wall Street opened optimistically higher over increased stimulus check prospects after the measure passed a House vote on Monday evening. However, Senate Majority Leader Mitch McConnell snubbed a fast-track measure despite support from President Donald Trump and several other GOP lawmakers.

Silver prices fell alongside U.S. equities as the chances for increased fiscal aid hit an impasse and in turn, weighed on inflation expectations. The weakened outlook was reflected in the Treasury market with the 10-year breakeven inflation rate dropping one basis point. The pullback in the US Dollar helped accelerate the risk-sensitive Australian Dollar higher, with AUD/USD rising on the day.

Meanwhile, anti-fiat gold prices managed to rise slightly, with XAU/USD benefiting from weak USD action. The downbeat Greenback failed to support silver prices, however, with XAG/USD dropping 0.02%. The move lower relative to gold is likely a product of silver’s recent outperformance against the yellow metal. The ongoing debate over increased stimulus payments will be front and center with concern to market movements.

Silver, S&P 500, AUD/USD – 30-Min Chart

Silver vs Sp500 vs audusd

Chart created with TradingView

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Thomas Westwater
Improve your trading with IG Client Sentiment Data
Get My Guide

Wednesday’s Asia-Pacific Outlook

The Asia Pacific session may see some spillover from Wall Street’s weak showing. But, with a light economic calendar amid the upcoming New Year’s holiday, equities may gyrate near current levels. Japan’s Nikkei 225 index ended Tuesday’s session near 30-year highs following the stimulus news in the United States. That said, a mild pullback may likely manifest in the Japanese index if traders continue to follow the same market theme as the last 24 hours.

Furthermore, Covid-19 remains a lingering question mark for traders. While vaccine headlines have supported a risk-taking environment across assets since the U.S. FDA gave the Pfizer-BioNTech vaccine an emergency use approval earlier this month, a Covid-induced pullback is certainly not off the table. In fact, a recently identified strain of Covid from the United Kingdom, this one more contagious, was identified in Colorado Tuesday night.

Its introduction may pressure sentiment in the coming weeks if it translates to an identifiable increase in cases. For now, however, markets appear largely immune to the ongoing spread, with U.S. hospitalizations continuing to accelerate. The Covid Tracking Project shows the number of virus patients in U.S. hospitals continues to rise, and December 29 saw a record 124,686 hospitalizations reported.

US Covid-19 Statistics

US Covid hospitalized

Source: The Covid Tracking Project

Silver Technical Outlook:

The current pullback in silver may extend further with the 23.6% Fib retracement from the March-August move sitting at 25.562, which could come into play to offer support. Year-end flows with the New Year only days away may skew fundamental price drivers over the next few days. That said, a resumption of the broader December trend higher may likely continue in 2021, but the next few days may have bulls watching from the sidelines.

XAG/USD’s overall bull trend from the Covid-induced March lows appears intact, however, with the 50- and 200-day Simple Moving Averages aimed towards higher ground. An inflection area comes into play above the 26 handle, but a breach above would see bulls challenging the 2020 high which sits just below the 30 handle. For now, consolidation into 2021 appears most likely, but outside of the short-term, higher ground appears to be favored in the technical outlook.

Silver Daily Chart

XAG/USD Chart

Chart created with TradingView

Silver Trading Resources:

--- Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwater on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES