Market Wrap: Stocks, Bonds, Commodities
Wall Street stocks closed in gain on Thursday, with the S&P 500 close at an all-time high, as economical data support the Federal Reserve’s assertion that the current rise of inflation will be a short period of time.
The Dow Jones Industrial Average advance 19.1 points (0.06%) to 34,466.24; the S&P 500 rose 19.63 points (0.47%) at 4,239.18; and the Nasdaq Composite gained 108.58 points (0.78%) at 14,020.33.
U.S. 10y bond yields slipped to three-month lows and broadly Asian indices gained on Friday as traders saw enough one-off factors in U.S. consumer price data to back the Federal Reserve’s conviction that rising inflation will be temporary.
MSCI’s index of Asia-Pacific stocks outside Japan gained 0.39% to 891.98 levels. Australian index rose 0.18% to 7,315.50. Japanese Nikkei traded flat to 28,955.50.
European stocks were higher on Friday, with the Stoxx Europe 50 Index gained 0.18% to 4,103.25, Germany’s DAX flat to 15,568.30, and France’s CAC gained 0.30% 6,566.80, and U.K.’s FTSE 100 advance 0.51% to 7,123.10.
Benchmark 10-year U.S. Treasury rose as demand for safe risk grows again, today 10-year bond yields lost 1.18% to 1.442.
Oil prices fell on Friday but were set for their third weekly gain on hope for a recovery in fuel demand in Europe, China, and the United States as rising vaccination rates lead to an easing of pandemic curbs.
Spot Brent crude oil lost 0.47% to $72.21 per barrel. US West Texas Intermediate crude down 0.43% to $69.99 a barrel.
The yellow metal traded 0.35% higher to 1900.50 dollars per ounce.
Market Wrap: Forex
After a week of anxious waiting, markets got the high U.S. inflation number they dreaded, shrugged it off, and moved on – leaving the U.S. dollar under pressure and most majors stuck in ranges.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, down 0.10% to 90.000.
The Euro US Dollar (EUR/USD) is a widely traded pair that fell 0.05% today. This left the pairing trading around $1.21720.
The Japanese yen lost against the U.S. dollar on Friday as the stock pushes higher. Today US/JPY rose 0.11% to 109.420 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD flat to 0.77510, and NZD/USD fell 0.10% to 0.71890.
EUR/USD Intraday: Support at 1.21760
Our pivot point is at 1.21760
Preferable Price Action: Take long positions below pivot level with targets at 1.22021 & 1.22183 in extension.
Alternative Price Action: Below pivot looks for further downside to 1.21478 & 1.21315.
Comment: Pair 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 produced
GBP/USD Intraday: In consolidation zone
Our pivot point is at 1.41545
Preferable Price Action: Buy positions above pivot with targets at 1.41972 & 1.42247 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.41088 & 1.40789.
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 produced
USD/JPY Intraday: Resistance at 109.509
Our pivot point is at 109.509
Preferable Price Action: Sell position below pivot with the target at 109.253 and 109.079 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.744 and 109.890.
Comment: price below its 20MA & 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 0.77500
Our pivot point is at 0.77500
Preferable Price Action: Buy Positions above pivot with targets at 0.77714 & 0.77832 in extension.
Alternative Price Action: Below pivot looks for a further downside with 0.77275 & 0.77137 as targets.
Comment: Pair 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 produced
CRUDEOIL Intraday: Support at 69.67
Our pivot point is at 69.67
Preferable Price Action: Above pivots buy Oil with 70.50 & 70.93 as targets.
Alternative Price Action: Sell crude below pivot with targets at 68.83 and 68.34 in extension.
Comment: Crude is above its 55MA & 20MA and MACD in the 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: Trend on the upside
Our pivot point is 1895.00
Preferable Price Action: Further upside to 1907.70 & 1914.72.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1883.08 and 1876.22.
Comment: MACD in positive territory and price above 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: In consolidation zone
Our pivot point is 34,542.00
Preferable Price Action: Take sell positions below pivot with targets at 34,407.00 & 34,330.00.
Alternative Price Action: Above 34,542.00 looks for further upside to 34,680.00 & 34,769.00.
Comment: Price 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