Market Wrap: Stocks, Bonds, Commodities
Wall Street, and a gauge of global equity markets, on Friday, recovered from earlier losses as investors took stock of a report that showed faster-than-expected U.S. jobs growth but which had previously stoked inflation concerns.
The Dow Jones Industrial Average rose 446.98 points (1.45%) to 31,371.12, the S&P 500 gained 59.5 points (1.58%) to 3,827.97 and the Nasdaq Composite added 147.19 points (1.16%) to 12,870.66.
Asian shares rallied on Monday while the dollar held near three-month peaks after the U.S. Senate passage of a $1.9 trillion stimulus bill and a surprisingly strong payrolls report augured well for a global economic rebound.
MSCI’s index of Asia-Pacific stocks outside Japan slumped 1.47% to 871.90 levels. Australian index rose 0.43% to 6,739.60. Japanese Nikkei traded 0.42% lower to 28,743.25.
European stocks were advance on Monday, with the Stoxx Europe 50 Index gained 0.57% to 3,694.50, Germany’s DAX rose 0.77% to 14,028.80 and France’s CAC higher 0.59% to 5,817.64 and U.K.’s FTSE 100 advance 0.57% to 6,668.38.
Benchmark 10-year U.S. Treasury advance as demand for risky asset grow again, today 10-year bond yield rose 0.37% to 1.556.
Oil prices jumped more than $1 a barrel on Friday, hitting their highest levels in nearly 14 months after OPEC and its allies agreed not to increase supply in April as they await a more substantial recovery in demand amid the coronavirus pandemic.
Spot Brent crude Oil up 1.62% to $67.16 per barrel. US West Texas Intermediate crude gained 1.73% to $70.56 a barrel.
The yellow metal traded down 0.10% to 1699.70 dollar per ounce.
Market Wrap: Forex
The dollar fell against the currencies of major commodity exporters on Monday as investors increased bets on countries that will benefit from rising prices for oil, metals, and other goods.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.20% to 92.170.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.26% today. This left the pairing trading around $1.18850.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes lower. Today US/JPY advance 0.12% to 108.450 level.
Other commodity related currency decline against U.S dollar, AUD/USD lower 0.10% to 0.76770 and NZD/USD down 0.26% to 0.71390.
EUR/USD Intraday: Trend on the downside
Our pivot point is at 1.19033
Preferable Price Action: Take short positions above pivot level with targets at 1.18712 & 1.18477 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.19304 & 1.19481.
Comment: Pair below its 20MA & 55MA and RSI at oversold levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
GBP/USD Intraday: Support at 1.38102
Our pivot point is at 1.38102
Preferable Price Action: Buy positions above pivot with targets at 1.386190 & 1.39135 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.37454 & 1.36967.
Comment: Price below its 55MA & 20MA and RSI below 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
USD/JPY Intraday: Trend on the upside
Our pivot point is at 108.276
Preferable Price Action: Buy position above with the target at 108.706 and 108.938 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.883 and 107.637.
Comment: price above 20MA & 55MA and MACD in positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
AUD/USD Intraday: Trend on the upside
Our pivot point is at 0.77013
Preferable Price Action: Sell Positions below pivot with targets at 0.76551 & 0.76261 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.77423 & 0.77728 as targets.
Comment: Pair below its 20MA & 55MA an RSI at oversold levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
CRUDEOIL Intraday: Support at 66.40
Our pivot point is at 66.40
Preferable Price Action: Above pivots buy Oil with 68.06 & 69.11 as targets.
Alternative Price Action: Sell crude below pivot with targets at 64.69 and 63.35 in extension.
Comment: Crude above its 20MA & 55MA and MACD in positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
XAU/USD Intraday: Break support levels
Our pivot point is at 1704.17
Preferable Price Action: Further downside to 1782.80 & 1775.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1809.00 and 1816.80.
Comment: MACD in negative territory and price below 20MA & 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
Dow Jones Intraday: Break major resistance levels
Our pivot point is 31,910.00
Preferable Price Action: Take buy positions above pivot with targets at 32,160.00 & 32,300.00.
Alternative Price Action: Below 31,910.00 looks for further downside to 31,660.00 & 31,520.00.
Comment: Price above its 55MA & 20MA and RSI above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced7