Today's Highlights
Stocks Back Off
Dollar Bears are Out
Please note: All data, figures & graphs below are valid as of January 10th. All trading carries risk. Only risk capital you're prepared to lose.
Market Overview
If the thought of the Fed tightening monetary policy wasn't enough, lower oil prices weighing on the energy sector has proven too much for the fragile stocks and global indices are declining.
One thing that could save them from sinking too far is earnings season, which starts this week. Many analysts are predicting that the 4th quarter of 2016 was a profitable one.
Like a teased lover, many have given up on caring whether the Dow Jones reaches 20k or not, but believe me, if it does manage to cross the line, there will be plenty of excitement.
Everybody seems to be waiting for Donald Trump's press conference tomorrow and there is continued talk about the inauguration on the 20th. Neither event seems like something that would be a game changer to me, but when you have that many fingers on that many buttons something is bound to move.
With the declining stocks, we can see a step forward in gold and silver.
All eyes remain on the British pound, which is breaking lower as I write. Major support coming up at 1.2069, but if that is broken there's nothing left until 1.1580, the multi-decade low.
Dollar Pullback
As speculation rises that Trump may not be able to do what he set out to, the US dollar is giving back some of the ground its gained since the election.
The US dollar index has remained below 102.5 since January 5th. We can also see the move quite clearly by checking the USD/JPY as the yen has largely been a neutral currency in the last few months.
The purple circle is Trump's surprise election. Since the Fed raised rates on December 14th, we can see a perfect range on this pair. The euro is also fighting back against the Buck and finds itself above $1.06 again. Here too we can see a range emerging...
At the moment, there is some resistance at 1.0650, but if it manages to break that there is a lot of room to grow. Here we can see the range on the EUR/USD since the beginning of 2015 from 1.05 to 1.14.
Disclaimer: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation.
Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.