S&P 500: Flying high? - BBH

Sandeep Kanihama FXStreet Contributor

The S&P had a tough start to the week as carrying over from the previous week the S&P 500 fell for four sessions, its longest losing streak since March, abut still managed to close higher for the third week in a row, notes the research team at BBH.

Key Quotes

“It gapped higher ahead of the weekend and did not look back. The gap is found between roughly 2641 and 2644. Indications from key Senators that the Alternative Minimum Tax would not be included in the final bill may helped equities recover. The NASDAQ also gapped higher ahead of the weekend, but it was not quite enough to lift in on a weekly basis. Once again, investors seemed keen to buy the pullback in the stock market.”

“The US 10-year yield has largely been confined to a 2.30% to 2.40% since late September. The range is not rock solid as there have been several false breaks. However, it is interesting to note that the five, 20 and 50-day moving averages converge in the middle of the range. The December 10-year note futures contract is showing little propensity to move out of the 124-06 and 125-06 range. The technical indicators are not generating strong signals, which warn that range-trading may persist.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japan's Takaichi secures historic victory in snap election

In Japan, Prime Minister Sanae Takaichi's coalition secured a supermajority in the lower house, winning 328 out of 465 seats following a rare winter snap election. This provides her with a strong mandate to advance her legislative agenda.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.