Market Update: S&P 500 and Currency Insights
Recent Data:
Yesterday was a bit of a mixed bag. The S&P 500 ended slightly down by 0.3%, while the Nasdaq could squeak out a gain of 0.1%. Back to FX, the U.S. dollar index held pretty steady, at around 101.5.
Economic Calendar:
Plenty to keep us busy in the calendar today, with the Eurozone and UK Manufacturing PMI data that will yield clues regarding the performance of their economies. We’ll also get Canada’s interest rate decision. These can stir up some action in the CAD pairs.
Major Currency Pairs
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EUR/USD: A bit higher versus the dollar, near 1.1050, the euro doesn’t really know what to do without the PMI figures, traders look for better direction. A robust PMI might help carry the euro higher.
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GBP/USD: The pound has been resilient, currently trading around 1.2900. Some good retail sales data from the UK partly offsets the slew of bad news coming in from the rest of the world, while this morning will be all about the PMI numbers.
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USD/JPY: The yen trades at 141.00 per dollar. Japan’s latest inflation figures came out yesterday, a little higher, though nothing too alarming. The dollar is going to move much in relation to today’s data out of Europe and the UK.
Commodity Prices
- Oil: Crude oil prices tick higher with WTI at $75 per barrel. OPEC supply concerns are keeping the price higher. Watch for any geopolitical events that might further disrupt supply.
- Gold: The price of gold firms around $1,950 an ounce. In general, investors have assumed a wait-and-see attitude and are holding off on big moves until upcoming data releases.
Political and Economic News:
- On the political front, a lot is being said about the new U.S. presidential election. It may be a little early, but markets are already pricing in prospective policy changes.
- Across the pond in Europe, there is talk about the EU’s new trade policies that would likely affect some sectors. In Canada, all eyes await the central bank’s rate decision today for possible speculations on whether they might further hike or hold their ground on rates.