All Articles Tagged - US500cash

US Open Note – Stocks under pressure on faster stimulus withdrawal signals

Posted on January 10, 2022 at 2:30 pm GMT

Global bond yields hit fresh highs; stocks retreat The Fed’s new message, which sparked fears that inflation could be tough to contain, and hence could require faster-than-expected rate hikes during the year, continued to weigh on market sentiment on Monday, elevating global bond yields to fresh highs. A couple of Fed policymakers have already urged the need to move towards normalization ahead of Powell’s testimony before the Senate Banking committee on Tuesday, making four rate hikes an increasingly likely scenario [..]

Daily Market Comment – US jobs report fuels bets for faster Fed hikes

Posted on January 10, 2022 at 10:30 am GMT

Traders bet on faster Fed rate increases after solid jobs report Yields spike higher but the dollar cannot capitalize – euro flows? Stock markets take another hit as valuation rotation continues Hot labor market The US jobs market is approaching full employment conditions with impressive speed. Even though nonfarm payrolls fell short of expectations in December, with the economy adding 199k jobs instead of the anticipated 400k, the rest of the report was very encouraging. The unemployment rate fell to [..]

Technical Analysis – US 500 index slips after posting all-time high; bias bearish

Posted on January 10, 2022 at 8:21 am GMT

The US 500 stock index (cash) has been plummeting in the four-hour chart since its upside trajectory peaked at the all-time high of 4,817. Moreover, the price crossed beneath both its 50-period simple moving average (SMA) and the Ichimoku cloud, further reinforcing the index’s imminent bearish bias. The recent pullback is likely to resume as the short-term oscillators indicate that selling forces have taken control. The MACD is found below its red signal line in the negative region, while the RSI is ticking slightly upwards well below its 50-neutral mark. If the price continues to descend, immediate support [..]

Daily Market Comment – US dollar braces for nonfarm payrolls test

Posted on January 7, 2022 at 10:01 am GMT

US employment report today could be crucial for markets FX and stocks quiet, but spike in yields hurts gold Oil powers higher as supply disruptions get priced in Conflicting signs for US jobs The main event today will be the US employment report for December, which could be huge for the dollar and equities as rate traders are currently pricing in an 80% chance for the Fed to begin its hiking cycle in March. Nonfarm payrolls are forecast to have [..]

US Open Note – Dollar eases ahead of FOMC minutes

Posted on January 5, 2022 at 1:27 pm GMT

Investors are expecting the release of the FOMC minutes and, more crucially, the release of non-farm payrolls in the US later this week. Following a robust surge in government bond yields, the yen has remained the currency with the worst performance for the time being. The pound has managed to outperform the euro. Although the dollar is the second strongest currency, it is still stuck in a range, except against the yen. FX market view and FOMC minutes expectation The dollar is weakening ahead of the ADP employment [..]

US Open Note – Dollar hits five-year high against yen; OPEC next on the radar

Posted on January 4, 2022 at 1:45 pm GMT

Omicron virus does not affect economic recovery Despite concerns about the extremely contagious omicron virus subtype, investors are focusing on the economic recovery from the pandemic and central bank’s plans for stimulus reduction at this time. In the FX market, the focus today is on dollar/yen, which surged to a new five-year high of 116.33 as risk-on sentiment pressed safe-haven currencies such as the yen. It may be difficult for sellers to reverse the trend. The BOJ will stay the most dovish, so the weak [..]

Daily Market Comment – Stocks march higher, yen blasted as traders take on risk

Posted on January 4, 2022 at 9:55 am GMT

Investors load up on riskier assets, dump safe havens as new year begins US stocks hit new records, dollar follows yields higher, yen gets hammered OPEC meeting and ISM manufacturing survey coming up today Funds position for new year A sense of optimism dominated on the first trading day of the year. Money managers loaded up their books with riskier assets such as equities and dumped defensive plays like bonds, positioning themselves for another stellar year in financial markets. With [..]

Technical Analysis – US 500 index starts new year in calm tone

Posted on January 3, 2022 at 4:38 pm GMT

The US 500 stock index (cash) has been softly oscillating between gains and losses in the first trading hours of 2022, remaining marginally below last week’s record high of 4,808. While the tiny daily candles over the past couple of sessions and the weakness in momentum indicators imply some anxiety among traders, the positive trend in the broad picture reflects healthy conditions in the market remain intact. A step below the former resistance zone of 4,720 could downgrade the short-term picture back [..]

Weekly Comment – US jobs and PMI data eyed as Omicron cases surge

Posted on December 30, 2021 at 2:47 pm GMT

Stocks staged a post-Christmas rally, reaching new highs amid thin trading volumes. Meanwhile, the Japanese yen has emerged as the undisputed loser in the FX arena, as Omicron fears ease, prompting traders to shift into riskier assets. In the upcoming week, the latest US employment data and FOMC minutes take center stage, together with a raft of PMI data from most major economies and European flash inflation figures. Highlights: Final Manufacturing PMI data for the Eurozone, US, UK, Japan and [..]

US Open – Stocks set for a muted opening; Omicron fears ease

Posted on December 29, 2021 at 1:34 pm GMT

Omicron not yet a problem for the US economy; dollar firms Omicron fears are easing on growing evidence that the fast-spreading variant leads to milder symptoms. This has prompted optimism about the US growth outlook as the strain has not yet weighed on economic data, despite the surging daily cases of the past week. The Richmond Fed’s manufacturing survey released on Tuesday rose in December beating consensus estimates. Firms reported their intention to continue raising wages to attract and retain [..]

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