US markets hit new highs as earnings continue to beat estimates

Joshua Mahony MSTA Scope Markets

Yet another batch of strong earnings figures has provided the US markets with another boost today, with the hesitancy over this afternoon’s FOMC meeting largely out the window.

US markets hit new highs after strong earnings figures
With no conference, markets look set to scour FOMC statement

US markets are ripping higher this afternoon, with the second quarter earnings season proving to be a major boon for the equities market. The deterioration in the US dollar coupled with low expectations in the face of slowing economic indicators has provided an environment for stocks to flourish, with Hilton, Coca Cola, DR Horton, and Ford all topping estimates on the street. The creation of new all-time highs is once more becoming the norm, with the Dow, Nasdaq and S&P500 all hitting new records in early trade.

This afternoon sees investors focus on the latest appearance from Yellen and co, at what promises to be a relatively uneventful meeting by historical standards. With the Fed Funds rate showing a 0% chance of a rate rise, and little chance of a balance sheet reduction being announced today, it is the linguistics which really matter. With no press conference from Yellen to contend with, markets will be keeping a close eye out for any mention within the accompanying statement of a potential September balance sheet reduction, alongside any reference to recent inflation dissapointment.

Author

Joshua Mahony MSTA

Scope Markets

Joshua Mahony is Chief Markets Analyst at Scope Markets. Joshua has a particular focus on macro-economics and technical analysis, built up over his 11 years of experience as a market analyst across three brokers.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.