Traders, I thought it would be helpful to post a chart of the S&P's this morning. It is very easy to get caught up in the headlines of weak S&P's given the widespread view that the market is long overdue for a pull-back. While that is true, the S&P's have climbed a wall of worry for a long time now. I am not ruling out a sustained move lower, but the price action and overall economic backdrop does not support it.
Regardless, the S&P's have an impact on FX markets and thus we will need to follow closely for the next few days.
Regardless, the S&P's have an impact on FX markets and thus we will need to follow closely for the next few days.
- S&P 500 - Bullish the weak price action over the last few days appears to be more of a correction than the start of a sustained move lower. Looks like an expanded flat unfolding. It seems unlikely that the S&P's would turn to a sustained move lower with recent economic data pretty robust. I will seriously consider getting long over the next 24-hours.
S&P 500 Chart
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.