Wall Street – Time to “Buy the Dip”?
|Welcome to this week’s Market Blast Fundamentals where we will look at WTI (US Oil), EURGBP, AUDNZD, EURUSD, USDCHF, and the Dow Jones Industrial Average (US 30).
The Dow Jones Industrial Average reached an all-time high above 30,000 last week and, if you caught our Market Blast Video from the 16th of November we looked at the positive effects to the market with the possible appointment of Janet Yellen to the position of US Treasury Secretary.
Well, that happened and equities have climbed, with that, and with the good news about Coronavirus vaccines.
We have had a pullback this morning, probably from month-end profit-taking and here is your chance to “buy the dip” if we get more good news on Coronavirus vaccines or a US stimulus package.
The USD is still looking weaker against the other major currencies like EURUSD above $1.197 and USDCHF at 0.903 and we have a lot of economic news this week coming out of the US with Pending Home sales today, the Manufacturing and non-Manufacturing PMIs tomorrow and Thursday, 2 speeches by Jerome Powell, ADP Employment Change, and of course, the non-farm payrolls Friday.
As well, we have an Interest Rate Decision from the Reserve Bank of Australia tomorrow and we are seeing general AUD strength against most accept the NZD.
GBP is mixed but we are expecting news this week as the UK might be the first country to approve Coronavirus vaccines and we hope to see progress on Brexit talks.
Talks in OPEC are continuing today and, if they can agree on production cuts we should see the price of WTI and Brent Crude improving.
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