- The US Dollar strength and upbeat earnings report escalated the recent recovery.
- Second-tier data from the US and Japan are in the focus for now.
Even if the US and China continue to be at loggerheads over trade after Trump administration’s protectionist measures, comments from the US Commerce Secretary Wilbur Ross that they’re getting to the core of talks with China triggered market optimism off-late.
Adding to the quote’s strength could be welcome earnings report from Cisco Systems (CSCO) and Walmart (WMT) together with the greenback increase on the back of upbeat data.
Global equity indices like DJI30, Nasdaq and S&P500 all closed in positive territory.
Portraying the shift in market mood, the US 10-year government bond yield grew 2 basis points to 2.40% on late-Thursday and is holding the same level during press time.
In addition to observing risk events like the US-China trade story and the US-Iran developments, investors might also emphasize on Japan’s April month tertiary industry index and May month Michigan consumer sentiment index from the US.
While Japan data may post -0.4% against -0.6% previous, the US consumer sentiment gauge could rise to 97.5 from 97.2 earlier.
A successful break of 110.00 becomes prerequisite for the buyers to aim for 100-day simple moving average (SMA) level of 110.50. However, 110.80 and 111.10 level including 50-day SMA might challenge the bulls then after.
Alternatively, 109.50 and 109.00 could be on the seller’s radar during pullback ahead of looking at 108.80 and 108.50.
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