US consumer confidence lifts bulls higher

28 December, 2016

US markets were buoyed today by the ever increasing consumer as consumer confidence lifted to a high not seen since 2001, as it breached through 113 (exp 108) showcasing the strength of the US economy. US dollar bulls will be happy to see this as a cherry on top moment for them leading into 2017 and the likelihood of stimulus from the new Trump president. The rest of the coming week is likely to be light on the fundamentals as one would expect this time of year, however, there is still pending home sales and unemployment claims coming up and this should provide some movements. Non-farm payroll in the new year before the presidential appointment will also set the tone for the year ahead and will be closely watched to also see how the FED could kick of the new year as well.

For market movements today the S&P 500 failed to deliver on the back of the big uptick on consumer confidence. This is due in part by many in the market viewing the FED raising rates as having a negative effect on equity markets. The movement higher today though touched on strong resistance at 2272 and this looks likely to be the market level that everyone looks to beat in the short term in the new year. Obviously if we do see a pullback on the charts and the S&P trending downwards, I would expect that the 20 day moving average to act as dynamic support which it has done previously.

Gold has also been another victim of the US bull run as of late, but it had as light resurgence as of late with the market pushing higher and coming up just short of dynamic resistance at the 20 day moving average. Previous resistance at 1143 was not enough to stop the charge, but this could be on the back of low liquidity in the market for commodity trading; hence the drop shortly after the rally. Despite all of this a strong level of support has formed at 1127 and it's likely we could possible see some ranging as a result of this over the coming week so watching key levels could be ideal for precious metal traders.

Finally, the USDCAD is one trade that is worth paying close attention to as it struggles to gather momentum in the marketplace. Oil prices recently were slightly up, but so far the CAD has registered any sort of movement against the USD - the big test will instead be on Thursday with US oil inventories which is expected to show a strong draw down in the market, the question will be if oil prices do indeed rally again strongly will they be strong enough to match the market and cause change.  For now the trend is certainly bullish and resistance can be found at 1.358. It will be interesting to see if the USDCAD can continue the bullish momentum and look to extend before the year closes out. 

Source link  
Turkish crisis spreads into markets

The Turkish Lira resumed its drop early Monday touching a new record low of 7.21 per dollar before recovering slightly during Asia trade. Comments from...

Stocks surge amidst USD weakness

The major winner today was the US stock market as it continued to surge higher on corporate earnings and an upbeat jobs report as JOTLS openings came in strong...

Is Trump truly winning the trade war?

Escalating trade tensions between the U.S. and China remain the financial markets hottest topic. President Trump seems to be celebrating...

BoJ unwilling to shift gears yet

After weeks of speculation that the Bank of Japan may begin to adjust its stimulus program, the central bank once again decided not to join the global trend...

Oil and equities jump on global events

Oil is back on the move again after the recent attack against a ship off the coast of Yemen carrying oil. The Saudis have suspended shipping around that area until the...

USD and Oil in focus

The USD lifted again against all majors, as US retail sales m/m came in strong at 0.5%, in line with expectations. At the same time the previous month was...

Investors in cautious mode

Global equity and foreign exchange markets were relatively quiet on Wednesday as the U.S. financial markets were closed in observance of Independence Day...

Recession fears rise as trade war heats up

It has been an interesting first half for 2018. Economic fundamentals and politics took center stage as both fought for market influence.

Relentless rout for emerging currencies

While the speed of selling has slowed down compared to the early part of the week, emerging market currencies have continued to show...

In the past 24 hours Bitcoin has gained 1.07% and reached $6279.1407324. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -2.3522% and is now at $1.1335. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -21.9% and is now at $281.319312045. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
5FIBO GroupFIBO Group78%