Good morning from beautiful Hamburg and welcome to our last Daily FX Report for this week. The MSCI All-Country World Index rose 0.6 percent at 4 p.m. in New York, for a seventh day of gains. The Standard & Poor’s 500 Index added 0.9 percent to 2,013.32, the highest since Aug. 20. It’s rallied 7 percent since Sept. 28. Energy and materials producers led Thursday’s advance, with each group capping an eighth straight gain. Health-care shares in the index erased a loss of 1.5 percent to close with a gain of 0.4 percent. The S&P 500 ended yesterday within five points of 2,000, a level that also halted previous attempts to rebound from its first correction since 2011.
Anyway, we wish you a successful trading day and a relaxing weekend!
Market Review – Fundamental Perspective
The dollar fell as minutes from the Federal Reserve’s latest meeting showed officials discussed how the strong U.S. currency was damping inflation and exports. The greenback slumped versus all but one of its 16 major peers as the release from the Sept. 16-17 gathering noted that the dollar has “strongly appreciated” against emerging-market counterparts and climbed versus currencies of commodity exporters and the main U.S. trading partners. The Fed held rates near zero last month after slowing Chinese growth roiled global markets in August. An appreciating dollar tends to restrain the U.S. economy by making American products more expensive abroad, while keeping down inflation by making imports less costly. The dollar fell 0.4 percent to $1.1277 per euro as of 3:28 p.m. in New York. The Bloomberg Dollar Spot Index, which tracks the currency versus 10 of its major peers, lost 0.4 percent. Money has flooded into dollar assets over the past 12 months in anticipation of the Fed’s first interest-rate increase in almost a decade. That’s boosted the central bank’s trade-weighted broad dollar index to its strongest since 2003.The pound dropped against the euro and rose versus the dollar as traders awaited the Bank of England’s decision on interest rates as well as minutes of its meeting which will be scoured for clues as to when officials will tighten policy. The MSCI All-Country World Index rose 0.6 percent at 4 p.m. in New York, for a seventh day of gains. The Standard & Poor’s 500 Index added 0.9 percent to 2,013.32, the highest since Aug. 20. It’s rallied 7 percent since Sept. 28. Energy and materials producers led Thursday’s advance, with each group capping an eighth straight gain. Health-care shares in the index erased a loss of 1.5 percent to close with a gain of 0.4 percent.
Daily Technical Analysis
EUR/GBP (Daily)
The Euro reached the turnaround in August as bulls broke the level of 0.718. Current price level is very close to very important resistances. This technical view is supported by both Moving Averages, which turned to long as well. It might be possible that a new bullish trend starts, if next resistances above 0.74 will be broken sustainable.
Support & Resistance (Daily)
Support Levels around | Resistance Levels around |
0.71915 | 0.74274 |
0.69384 | 0.74811 |
N/A | N/A |
CAD/CHF (Weekly)
This currency pair was able to recover some losses after the sharp sell-off in January. Last months the historical price built a very interesting pattern like a flag. It seems to be possible that bulls are able to break through this flag and start increasing movements up to next resistances. Next support and resistance should be considered to protect trading positions.
Support & Resistance (Weekly)
Support Levels around | Resistance Levels around |
0.69728 | 0.79419 |
0.68135 | N/A |
N/A | N/A |
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Editors’ Picks
EUR/USD stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.