Market Wrap: Stocks, Bonds, Commodities
U.S. stocks rallied on Monday with the Dow and S&P 500 closing at record levels, as a round of strong economic data buoyed investor optimism for the economic reopening and a muted climb in the 10-year U.S. Treasury yield kept inflation worries in check.
The Dow Jones Industrial Average rose 373.98 points (1.13%) to 33,527.19, the S&P 500 gained 58.04 points (1.44%) to 4,077.91 and the Nasdaq Composite added 225.49 points (1.67%) to 13,705.59.
An ISM survey for March showed a measure of U.S. services industry activity jumped to a record high. The data followed Friday’s report showing U.S. nonfarm payrolls surged by 916,000 jobs in March, trouncing forecasts.
Asian equities are poised to rise on Tuesday after the S&P 500 and Dow indexes set records as a streak of strong U.S. economic data fueled optimism even as a smaller-than-expected climb in 10-year Treasury notes eased inflation concerns.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.31% to 881.20 levels. Australian index advances 0.84% to 6,885.90. Japanese Nikkei traded 1.30% lower to 29,696.60.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield down 0.41% to 1.713.
Oil prices slipped on Monday, paring strong gains made in the previous session that was driven by the decision by OPEC+ to gradually ease some of its production cuts between May and July.
Spot Brent crude oil rose 2.10% to $63.43 per barrel. US West Texas Intermediate crude up 2.15% to $59.90 a barrel.
The yellow metal traded rose 0.20% to 1731.10 dollars per ounce.
Market Wrap: Forex
The dollar stabilised near an almost two-week low versus a basket of its peers on Tuesday, moving in tandem with a retreat in Treasury yields from recent peaks despite signs of a robust U.S. economic recovery.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose 0.10% to 92.690.
The Euro US Dollar (EUR/USD) widely traded pair flat today. This left the pairing trading around $1.18120.
The Japanese yen fell against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY rose 0.24% to 110.430 level.
Other commodity-related currency lower against the U.S dollar, AUD/USD slipped 0.37% to 0.76200 and NZD/USD lost 0.50% to 0.70180.
EUR/USD Intraday: Trend on the upside
Our pivot point is at 1.17860
Preferable Price Action: Take long positions above pivot level with targets at 1.18200 & 1.18390 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.17520 & 1.17330.
Comment: Pair above its 20MA & 55MA and RSI near 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
GBP/USD Intraday: Bias on the downside
Our pivot point is at 1.39040
Preferable Price Action: Sell positions below pivot with targets at 1.38550 & 1.38250 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.39520 & 1.39820.
Comment: Price below at 20MA & 55MA 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: Support at 110.180
Our pivot point is at 110.180
Preferable Price Action: Buy position above with the target at 110.540 and 110.750 in extension.
Alternative Price Action: The downside breakout of pivot would call for 109.850 and 109.640.
Comment: price above 20MA & 50MA 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 downside
Our pivot point is at 0.76540
Preferable Price Action: Sell Positions below pivot with targets at 0.76100 & 0.75850 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.76960 & 0.77210 as targets.
Comment: Pair below its 20MA & 55MA 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
CRUDEOIL Intraday: In the consolidation zone
Our pivot point is at 58.75
Preferable Price Action: Above pivots buy Oil with 59.80 & 60.40 as targets.
Alternative Price Action: Sell crude below pivot with targets at 57.70 and 57.10 in extension.
Comment: Crude above its 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: Resistance at 1739.20
Our pivot point is at 1739.20
Preferable Price Action: Further downside to 1723.20 & 1713.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1754.70 and 1764.00.
Comment: MACD in positive territory and price below 20MA.
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: Trend on the upside
Our pivot point is 33,390.00
Preferable Price Action: Take buy positions above pivot with targets at 33,530.00 & 33,610.00.
Alternative Price Action: Below 33,390.00 looks for further downside to 33.240.00 & 33,160.00.
Comment: Price above its 55MA and RSI at 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