Mix Bag for European Currency Majors
The #Dow above 25131 +169, #SP500 at 2721 +18.15 with #NASDAQ at 7262 +52.10 are all back on the rise led by technology stocks. The #VIX-fear gauge have slipped below the 18 levels added to the positive tone. With Crude Oil steady at the 63.00 and Gold's lackluster trades just about 1330.80 down by -1.90 have given the some support for the USD to hold its corrective session.
Meanwhile, on the currency front only #CABLE or the British Pound slight rise at 1.3975 have been quite resilient against the back drop of the #EURO trading lower to the 1.2294 handle that would seem to still find some weakness moving forward. There has been no real significant news report worthy enough to provide a strong price recovery as the mid-term outlook remains for the EURO to slide from its current levels.
Even with the EURGBP Cross consolidation pattern seen on a weekly basis on the chart has weighed heavy, thus provide a probable support for CABLE's steadier move reflecting its resiliency with the USD, even when it was on the way up. Declines were limited as it moves in a 'Cluster' formation as some tech analyst would consider a market squeeze as buyers and sellers struggle while the prevailing market trend for CABLE is still up.
The last trading week is ahead for the month and March end of the quarter trading is at hand. Financial Futures expiration in March would provide a glimpse into how the rest of the majors would perform. As the Japanese Yen remain under pressure (Step-down formation) continues but with the NIKKEI's recovery on the plus side may also find some slight contrary opinion from the prevailing safe haven initiatives that had taken place. This goes the same with the USDCHF has followed suit and would remain at the current levels.
The US equities recovery has the level of market transparency as the price recovery truly reflects what has been expected. The Free flow of market sentiments speaks for itself as Technology stocks leads the way. Let's see how this would spill over into Asia next trading week.
ReplyDeleteAs a result: Friday Trades - Feb 23, 2018 WAY TO GO!
ReplyDeleteThe Dow Jones Industrial Average (.DJI) rose 347.51 points, or 1.39 percent, to 25,309.99, the S&P 500 (.SPX) gained 43.34 points, or 1.60 percent, to 2,747.30 and the Nasdaq Composite (.IXIC) added 127.30 points, or 1.77 percent, to 7,337.39. Benchmark 10-year U.S. Treasury notes last rose 13/32 in price to yield 2.8714 percent, from 2.917 percent.
With Equity Futures still on the go as of this writing, it would be safe to say that the recovery would be good nearing the end of February. Chartist may disagree as significant as it may have been for the previous sell off, equities resiliency for the past week has been identified.
ReplyDeleteFor as long as this persist, a very good chance for sentiments to carry over to the next month even nearing a rate hike expectations to be delivered by the FED. With that said, a stable USD for now can best described to be good for currency investors on CABLE.
Markets are focused on J Powell's testimony which we think would not sway away from the FED's previous statements. It is how he would react to Q & A that would be watched carefully. For now we don't see any real significant changes unless otherwise proven in fact.
ReplyDeleteFor now we remain on course as the end of February comes to a close. Although, we still see quite a bit of market volatility heading into mid March nearing the end of the 1st quarter trading that should provide a better market outlook by then.
Summary as of US trading session March 01, 2018
ReplyDeleteThe Dow Future is down 94 points to 24944.
The US Dollar Index trended higher 0.140 points to 90.845. Gold has eased 4.650 dollars to 1310.945.
Silver has eased 0.07150 dollars to 16.31200.
Dow Industrials edged lower 380.83 points, at 25029.20.
S&P 500 trended lower by 30.45 points, last seen at 2713.83.
Nasdaq Composite edged lower 50.96 points to 7279.39
JOB #'s Gives Wall Street A Lift
ReplyDeleteBeating expectations with 313K Jobs have given investors a sign of relief. This is the catalyst that would change market sentiments led again by Technology