All Articles Tagged - US500cash

Technical Analysis – US 500 index approaches new record highs

Posted on November 17, 2021 at 11:46 am GMT

The US 500 cash index powered back higher after its retreat in September, reaching a new record high. The overall picture remains bullish as the index is currently trading well above its 50- and 200-day simple moving average (SMA). Short-term momentum indicators are reflecting a mixed picture for the index. The MACD is looking ready to cross above its red signal line which would be an encouraging sign of strengthening momentum. However, the RSI has entered its 70 overbought region, [..]

US Open Note – Dollar continues march higher after the US retail sales release

Posted on November 16, 2021 at 2:04 pm GMT

US retail sales ticks up US retail sales are the highlight of today. The figure climbed by 1.7% m/m for October as compared to 0.8% in the previous month, driving the greenback higher. Despite supply issues and delivery delays, there is a strong belief that customers will begin their holiday shopping earlier this year. Vice President Biden has made his selection for the position of Chairman of the Federal Reserve. Powell is the most qualified candidate, even though Brainard has [..]

US Open Note – Greenback slips as Fed tapering starts

Posted on November 15, 2021 at 2:04 pm GMT

Fed tapering begins According to the FOMC meeting of November 2-3, tapering will begin this week as planned. The New York Fed announced its modified bond-purchase schedule last week, confirming that tapering will start this month. Until June, the Federal Reserve intends to keep reducing its purchases by $15 billion each month. There is a possibility of a change in tapering speed, but the Fed has indicated that it will only do so if it is necessary. Futures for the Fed Funds rate are still pricing in a Q2 liftoff of roughly two-thirds, while [..]

Daily Market Comment – Dollar rules the FX skies, equities undecided

Posted on November 12, 2021 at 9:43 am GMT

Dollar remains king as Fed shockwaves reverberate Stocks caught in limbo, oil prices wary of supply risks Second-tier data coming up today, but could be crucial Dollar reigns supreme The trading week is coming to a close with the dollar ruling the skies over the FX battleground, after a shocking acceleration in US inflation reignited expectations for faster Fed rate increases and served as jet fuel for the reserve currency. Markets are currently split on whether the FOMC will hike [..]

Daily Market Comment – US inflation under the microscope

Posted on November 10, 2021 at 9:38 am GMT

All eyes on US inflation today, dollar’s fortunes hang in the balance Stocks pull back after massive rally, bond market in gloomy mood Oil prices jump, iron ore slumps, gold rallies but not impressively Another inflation shock? The spotlight today will fall on the latest US inflation report, which could unleash turmoil in the markets if there are any surprises. The annual CPI rate is expected to have soared to 5.8% in October, a pace not seen in three decades. [..]

US Open Note – Dollar still holds in negative territory after US PPI

Posted on November 9, 2021 at 2:16 pm GMT

Calm day with US core PPI Across the board, this week’s data has been strong but not so important. The market has instead been focused on central banks, with both the US Federal Reserve and the Bank of England meeting last week. The FOMC voted to taper immediately in November, with a $15bn reduction per month in purchases, which implies asset purchases would end completely by June 2022. Markets are continuing to price in a Fed lift-off that occurs sooner than the Fed desires. Even though many Federal [..]

Daily Market Comment – Stocks living the dream, yen shines as yields retreat

Posted on November 9, 2021 at 9:50 am GMT

US stocks remain at record highs, enabled by falling real yields Dollar a touch softer amid rumors Brainard could replace Powell Yen and gold enjoy more gains, sterling recovers despite risks Euphoria in the air Can anything stop the runaway train that is the US stock market? The S&P 500 closed at another record high on Monday, bringing its total gains for the year to a stunning 27%. Infrastructure spending, assurances from Fed officials that they won’t slam on the [..]

US Open Note – Dollar eases at the beginning of the week

Posted on November 8, 2021 at 2:01 pm GMT

FX arena remains calm As the new week gets underway, the outlook for the dollar is slightly negative. Having initially climbed on Friday, the dollar index later declined from the 94.62 high and has since remained negative. The euro, which has remained heavy following last week’s unsuccessful drop below the $1.1525 level, is still moving near $1.1570 with weak momentum. On Friday, the pound challenged the support near $1.3410, where it was unable to break through. A clean break below would set up a test of the December 2020 low of $1.3135, which would be a significant step forward. [..]

Daily Market Comment – Strong jobs report can’t lift dollar, but equities shoot up

Posted on November 8, 2021 at 9:27 am GMT

Dollar unable to capitalize on solid US employment report But stock markets push higher, powered by decline in yields Gold shines as well, focus now turns to litany of Fed speakers Strong NFP not enough to boost dollar The US employment report for October was pretty solid. Nonfarm payrolls overcame forecasts, the previous month’s number was revised higher, the unemployment rate fell another two ticks to reach 4.6%, and wage growth accelerated. Yet investors were not impressed. Treasury yields fell [..]

US Open Note – Nonfarm payrolls don’t impress dollar; Canadian jobs data mixed

Posted on November 5, 2021 at 2:41 pm GMT

Central banks keep faith in transitory inflation Central banks showed sympathy to people’s fears of high inflation the past two weeks but clearly rejected the strong rate hike pricing in markets for the next year, clarifying that they will remain faithful to their initial assessment of temporary inflation, and hence, keep borrowing costs steady, even if the transitory phase lasts a bit longer. Investors did not completely digest the recent dovish talk on interest rates and perhaps higher rates will [..]

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