Market Wrap: Stocks, Bonds, Commodities
The Canadian dollar has underperformed compared to other pro-cyclical currencies since the beginning of May, influenced by its connection with US economic data and Federal Reserve rate expectations.
The Dow Jones Industrial Average fell 196.82 points to 39,806.77, the S&P 500 gain 0.09% to 5,308.13 and the Nasdaq Composite surged 108.91 points to 16,794.87.
MSCI’s index of Asia-Pacific stocks outside Japan is surged 0.36% to 7,863.70 levels. The Australian index was low by 0.15% to 7,851.70. Japanese Nikkei Index decrease 0.35% today.
European stocks were negative on Tuesday, with the Stoxx Europe 50 Index decrease 0.85% to 5,031.45, Germany’s DAX drop 0.63% to 18,649.45, and France’s CAC lower 1.10% to 8,105.63 and U.K.’s FTSE 100 loss 0.45% to 8,386.53.
Benchmark 10-year U.S. Treasury rose as demand for safe assets slipped again, today 10-year bond yields decrease 0.18% to 4.4290.
Oil prices extended losses on Tuesday, with investors expecting lingering U.S. inflation to keep interest rates higher for longer, depressing consumer and industrial demand.
Spot Brent crude oil descend 0.92% to $82.94 per barrel. US West Texas Intermediate crude is down 0.90% to $78.59 a barrel.
The yellow metal gold is decrease 0.75% to 2,420.25 dollars per ounce.
Market Wrap: Forex
The U.S. dollar traded in a tight range Tuesday, steadying as traders looked for new clues over the expected timing and extent of Federal Reserve rate cuts this year.
Today, the U.S. dollar index measures the Greenback against a trade-weighted basket of six major currencies, which drop 0.07% to 104.385.
The Euro US Dollar (EUR/USD) is a widely traded pair that is increase 0.17% today. This left the pair trading around $1.0873.
The Japanese yen was negative against the U.S. dollar on Tuesday. Today USD/JPY is lower 0.06% to the 156.140 level.
Another commodity-related currency mixed against the U.S dollar, AUD/USD surged 0.03% to 0.66690, and NZD/USD descend 0.06% to 0.61010 level.
EUR/USD Intraday: Support level at 1.08590
Our pivot point is at 1.08590
Preferable Price Action: Take buy positions above pivot level with targets at 1.08730 & 1.08820 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.08460 & 1.083370.
Comment: RSI is above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicate Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
GBP/USD Intraday: Trend on the upside
Our pivot point is at 1.27130
Preferable Price Action: Buy positions above pivot with targets at 1.27350 & 1.27530 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.26900 & 1.26710.
Comment: RSI is above 50 level and Pairs are above its 20MA & 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate 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 156.401
Preferable Price Action: Sell position below pivot with the target at 155.980 and 154.690 in extension.
Alternative Price Action: The upside breakout of the pivot would call for 156.780 and 157.030.
Comment: MACD is below 50 levels and pairs below its 20MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate 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 0.66720
Preferable Price Action: Sell positions below pivot with targets at 0.66380 & 0.66140 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.67060 & 0.67280 as targets.
Comment: RSI is below 50 levels and pairs below its 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
CRUDEOIL Intraday: Trend on the downside
Our pivot point is at 78.89
Preferable Price Action: Below pivot sell oil with 78.31 & 77.86 as targets.
Alternative Price Action: Buy crude above pivot with targets at 79.44 and 79.87 in extension.
Comment: MACD is negative territory and pairs below its 20MA & 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
XAU/USD Intraday: Trend on the downside
Our pivot point is 2431.10
Preferable Price Action: Further downside to 2405.70 and 2386.10.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 2456.50 and 2474.00.
Comment: MACD is below 50 levels and pairs below its 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
Dow Jones Intraday: Trend on the downside
Our pivot point is 39,837.40
Preferable Price Action: Take sell positions below the pivot with targets at 39,779.10 & 39,733.40.
Alternative Price Action: Above 39,837.40 looks for further upside to 39,900.00 & 39,953.30.
Comment: RSI is below 50 levels and pairs below its 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicate Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced