ONLINE FOREX BROKER
2021-06-01 • Updated
The first day of summer is here! What was May like for the US stock indices? And, most importantly, what should we expect next?
Last month, the market was swinging between the risk-on and the risk-off. On the one hand, a concern around surging inflation was the main factor driving the American indices down last month. For example, the US Core PCE Index, one of the Fed’s favorite measures of inflation, increased by 0.7% in April to the highest level since 1992. Investors worry that massive injections of liquidity will keep the inflation pressures high for a prolonged time. Despite this uncertainty, the Fed members still see the rise of this indicator as temporary. Fed’s opinion seems controversial to some investors. As a result, the indices remained pressed in May.
On the other hand, indices could not avoid a fast vaccination pace in the United States combined with the economic reopening. As the monetary policy in the US remains loose, the massive capital inflows push the American stock gauges to new highs.
If we look at the monthly chart of S&P500, we can see that May’s candlestick is a Doji one. This is a warning sign for traders. However, given to existing fundamentals, the retest of 4240 and the breakout to the next high of 4300 are possible.
As for NASDAQ, the overall picture on the monthly chart was not so bright, as the index dropped below 13,000. By the end of the month, it has managed to recover and reached the resistance of 13,740. The next obstacle for bulls will lie at 13,900.
This month, we need to stay extremely focused on the US inflation and speeches by the Fed members. If nothing changes, we may see new highs of the indices above and the pullback afterwards.
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Bloomberg reported that ‘the S&P 500 Energy Index has outperformed the broader S&P 500 by 21 percentage points so far this year'.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
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