The S&P 500 rebounded past the 5000 yesterday. This time, a mixed set of manufacturing data and a drop in US retail sales – which fell the most in almost a year – were brought forward as soothing factors regarding the dovish Federal Reserve (Fed) expectations. The S&P500 rebounded past 5000, stocks in Europe and Japan trade near ATH levels despite slowing economies and recession chatter.

Investors will watch the US PPI update before the closing bell, but I wonder if it matters, anymore.

The US Dollar index retreated to 100-DMA and sees support at this level. The EURUSD tested its own 100-DMA resistance to the upside and sees resistance at this level. The USDJPY bulls sit timidly above the 150 level, knowing that this is probably a peak, or close to a peak before the Japanese do something to reverse the selloff. Crude oil bulls drill above the thick 200-DMA offers, gold is back above the $2000 per ounce, but the positive pressure in the US yields will likely weigh on the yellow metal appetite and prevent the gold diggers from aiming for new highs as the Fed doves retreat, and Bitcoin is doing just fine. Nine Bitcoin ETFs that have been trading since early January have already amassed $10bn of inflows. And it’s just the beginning. 

 

This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

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