Market Wrap: Stocks, Bonds, Commodities
US stocks climbed on Friday, lifted by technology stocks after a tepid US monthly jobs report relieved investor concerns the Federal Reserve might rein in monetary stimulus soon.
The Dow Jones Industrial Average rose 149.58 points (0.43%) to 34,726.62, the S&P 500 gained 34.78 points (0.83%) to 4,227.63 and the Nasdaq Composite added 203.63 points (1.50%) to 13,818.13.
Asian shares firmed up on Monday while the dollar wavered after the anxiously awaited May U.S. payrolls report showed the recovery on track but not so hot that it might bring forward a policy tapering from the Federal Reserve.
MSCI’s index of Asia-Pacific stocks outside Japan slipped 0.05% to 890.64 levels. Australian index decline 0.19% to 7,281.90. Japanese Nikkei traded 0.27% higher to 29,019.24.
European stocks were slipped on Friday, with the Stoxx Europe 50 Index fell 0.12% to 4,074.04, Germany’s DAX flat to 15,628.30, and France’s CAC declined 0.10% 6,502.60, and U.K.’s FTSE 100 lost 0.23% to 7,047.30.
Benchmark 10-year U.S. Treasury rose as demand for safe assets grows again, today 10-year bond yields gained 0.88% to 1.574.
Oil extended gains to hit fresh multi-year highs on Monday, underpinned by a brighter economic and fuel-demand outlook, while investors eyed the outcome of talks between Iran and world powers over a nuclear deal that is set to boost crude supplies.
Spot Brent crude oil lost 0.77% to $71.34 per barrel. US West Texas Intermediate crude down 0.63% to $69.18 a barrel.
The yellow metal traded 0.30% lower to 1883.80 dollars per ounce.
Market Wrap: Forex
The dollar began the week on the defensive after being dented by the second batch of disappointing jobs figures, as traders turned to whether upcoming inflation data could add pressure on policymakers to taper monetary stimulus.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, higher 0.10% to 90.222.
The Euro US Dollar (EUR/USD) is a widely traded pair that fell today. This left the pairing trading around $1.21540.
The Japanese yen gained against the U.S. dollar on Friday as the stock pushes higher. Today US/JPY flat to 109.480 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD flat to 0.77340, and NZD/USD slipped 0.15% to 0.71980.
EUR/USD Intraday: Resistance at 1.21715
Our pivot point is at 1.21715
Preferable Price Action: Take short positions below pivot level with targets at 1.21414 & 1.21219 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.22024 & 1.22225.
Comment: Pair below its 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
GBP/USD Intraday: In a consolidation zone
Our pivot point is at 1.41380
Preferable Price Action: Sell positions below pivot with targets at 1.40944 & 1.40707 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.41743 & 1.41992.
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 downside
Our pivot point is at 109.725
Preferable Price Action: Sell position below with the target at 109.420 and 109.235 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.969 and 110.149.
Comment: price below its 55MA and MACD in negative 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: Support at 0.77193
Our pivot point is at 0.77193
Preferable Price Action: Buy Positions above pivot with targets at 0.77518 & 0.77784 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76864 & 0.76656 as targets.
Comment: Pair 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 produced
CRUDEOIL Intraday: Resistance at 69.16
Our pivot point is at 69.16
Preferable Price Action: Below pivots sell Oil with 68.52 & 68.18 as targets.
Alternative Price Action: Buy crude above pivot with targets at 69.72 and 70.09 in extension.
Comment: Crude is below its 55MA & 20MA and MACD in the negative 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: Trend in the downside
Our pivot point is 1890.70
Preferable Price Action: Further downside to 1876.30 & 1868.00.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1904.60 and 1912.90.
Comment: MACD in negative territory and price below its 55MA & 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: Break resistance level
Our pivot point is 34,598.00
Preferable Price Action: Take buy positions above pivot with targets at 34,735.00 & 34,790.00.
Alternative Price Action: Below 34,598.00 looks for further downside to 34,494.70 & 34,428.70.
Comment: Price above its 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