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XTB TRADEBEAT

US stocks make more record highs as USD attempts to recover

Summary:

  • US500 breaks above 2700 to post yet another all-time high
  • ISM manufacturing beats forecasts. USD attempts to rise
  • GBP falls back as construction PMI beats
  • Oil.WTI moves higher
  • Gold threatening to end 5-day winning streak
  • Bitcoin moves back above 15000

It’s been another good day for US stock market bulls with the US500 adding to Tuesday’s gains and bursting above the 2700 level to post another all-time high. There have also been notable gains seen in the DE30 as Europe looks to shake off the early weakness seen this year and the UK100 has also recovered after some selling yesterday. 

The USD has attempted to rise today, aided by a better than expected ISM manufacturing PMI. The Buck reacted positively to the above forecast print of 59.7 but it has failed to see any follow through as of yet and fallen back a little into the European close. The FOMC minutes are released this evening before Friday sees the NFP report and there’s a growing feeling that this week could could be a pivotal one for the Greenback. 

One of the contributing factors behind the UK100’s rise today has been a fall in the Pound. Sterling against the US dollar had earlier hit a 3 and a half month high but a second successive miss in PMI readings - this time in construction - has weighed on the Pound which has fallen back to trade around the 1.35 handle against the US dollar.   

Oil Benchmarks have begun the year in a bullish fashion with Brent and Oil.WTI taking out last year’s peak in the first trading days. Political tensions in Iran are a contributing factor and tonight’s API inventory release could be interesting to watch. Tomorrow sees the more widely followed DOE number at 16:00 GMT. A technical overview of Oil.WTI can be found here.

Some analysts and traders believe that auto sales can be one of the most significant indicators of consumer spending and today has seen the release of December’s numbers from the US. The big 3 - Ford, Chrysler and GM - reported a little better than expected sales but other manufacturers will likely be disappointed. The data can be seen to impact the US dollar and by extension Gold and the precious metal is a little lower by the European close after posting an incredible 8 consecutive daily gains. Can it make it 9 today?

Bitcoin has been on the rise today as the cryptocurrency has recaptured the 15000 level. The market has received a boost from well known investor Peter Thiel, the co-founder of PayPal, who announced yesterday that he has a large holding of Bitcoin. 

 

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