SP 500 Exchange rate
EUR/USD stays below 1.0900 as Q1 comes to an end
EUR/USD has lost its traction and declined below 1.0900 in the American session on Friday. Quarter-end flows seem to be allowing the US Dollar find some demand but the risk-positive market environment seems to be limiting the pair's downside ahead of the weekend.
GBP/USD trades below 1.2400, looks to post weekly gains
GBP/USD has edged lower after having tested 1.2400 earlier in the day but remains on track to end the third straight week in positive territory. The upbeat mood remains intact after soft PCE inflation data from the US, making it difficult for the US Dollar to continue to gather strength.
Gold tries to stabilize near $1,980 following earlier spike
Gold price has returned to the $1,980 area following a spike above $1,987 with the initial reaction to lower-than-expected PCE inflation figures from the US. Meanwhile, the benchmark 10-year US Treasury bond yield stays in the red near 3.5%, providing support to XAU/USD.
Will Dogecoin price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. The recent recovery above the range low looks promising and hints at an explosive move for next week.
Week ahead – Nonfarm payrolls to set the tone for US dollar
With the banking turmoil receding, market participants will turn their attention back to economic releases. The spotlight will fall on the US employment report.
The Standard & Poor's 500, abbreviated as the S&P 500, or just "the S&P” is a market value-weighted index of 500 large companies having common stock listed on the New York Stock Exchange (NYSE). It is seen as a leading indicator of U.S. equities and generally perceived as the most representative.
The S&P 500 stock market index, maintained by S&P Dow Jones Indices, comprises exactly 505 common stocks – including two share classes of stock from 5 of its component companies – issued by 500 large-cap companies and traded on American stock exchanges (including the 30 companies that compose the Dow Jones Industrial Average, DJIA) and covers about 80% of the American equity market by capitalization. The index is weighted by free-float market capitalization, so more valuable companies account for relatively more of the index. The index constituents and the constituent weights are updated regularly using rules published by S&P Dow Jones Indices.
The companies of the index are selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor's following selection criteria including market size, liquidity and industry grouping.
Over time, the S&P 500 can be used as a benchmark for the economy.
HISTORIC HIGHS AND LOWS FOR S&P 500
- All-time records: Max: 3397 on 20/02/2020 - Min: 4.4 on 05/1932
- Last 5 years: Max: 3397 on 20/02/2020 - Min: 1807 on 11/02/2016
* Data as of February 2020
ASSETS THAT INFLUENCE THE S&P 500 THE MOST
- Currencies: USD.
- Commodities: Oil and Gold.
- Bonds: T-Bond (Treasury bond is a marketable, fixed-interest U.S. government debt security).
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE THE S&P 500
Since the S&P 500 is a benchmark of American stocks, what will impact its value is related to all those decisions and figures that affect the results of big companies in the USA. That is, among others:
- Economic indicators of inflation (CPI, PPI,...), consumer confidence (as Michigan Consumer Confidence Index), growth (GDP), employment (Non Farm Payrolls) and salaries (Average Hourly Wages)
- interest rates decided by the Federal Reserve System, which is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises. Jerome Powell is the 16th Chair of the Federal Reserve, serving in that office since February 2018. He was nominated to the Fed Chair position by former President Donald Trump and confirmed by the United States Senate.
- Fiscal policy, trade deals, business laws decided by the US administration (Joe Biden), but also by the US Treasury Department (Janet Yellen) and the US Department of Commerce (Wynn Coggins). The US Department of the Treasury's mission is to maintain a strong economy and create economic and job opportunities by promoting the conditions that enable economic growth and stability at home and abroad, strengthen national security by combating threats and protecting the integrity of the financial system, and manage the U.S. Government’s finances and resources effectively. The US Department of Commerce is an executive department of the federal government concerned with promoting economic growth. Among its tasks are gathering economic and demographic data for business and government decision-making, and helping to set industrial standards
- Energy prices such as electricity, oil, etc...because they have impact on production costs for those companies that are part of the S&P500.