The Bitcoin “death cross” has occurred. The S&P 500 rallied the most in five weeks! Crude oil and gold jumped as the US dollar weakened.
Oil is at 13-month high due to deep freeze in Texas
- Stocks are rallying up further amid the ongoing global recovery. S&P 500 set a record high at 3 956, Nasdaq – at 13 884. Japan’s Nikkei 225 rose above 30 000.
- Oil prices surged to 13-month highs as oil production stopped in Texas because of extremely cold weather. Besides, such a deep freeze boosted power demand. Rising oil prices pushed up commodity-sensitive currencies such as the Canadian dollar.
- Ten-year Treasury yields soared above 1.24%, marking the highest level in almost a year. It may press gold down.
- Bitcoin skyrocketed to another record, approaching the milestone of $50 000.
- “Continued monetary stimulus and bursts of fiscal support maintain a strong foundation for risk assets, compensating for the slower than expected vaccine rollout,” said Principal Global Investors.
EUR/USD has been trading back and forth just below the 50-day moving average at 1.2150. If it manages to break it, the way up to the high of January 22 at 1.2190 will be open. On the flip side, the move below the low of February 12 at 1.2090 will drive the pair down to the next support of 1.2030.
GBP/USD jumped to the psychological mark of 1.3950 but failed to cross it. If it breaks it on the second try, the doors towards the next resistance of 1.4000 will be open. Support levels are at yesterday’s low of 1.3900 and at the low of February 12 at 1.3840.
USD/JPY has soared to the 200-day moving average of 105.60. If it manages to break it, the way up to November’s high of 106.00 will be open. On the flip side, if it fails to break it again, it may drop to the support of 105.00.
WTI oil is trading just above the $60.00 level. The way up to yesterday’s high of $61.00 is clear. Support levels are $59.00 and $57.50. Current oil CFDs: WTI-21H expires on February 19, WTI-21J expires on March 19.
Wednesday will please traders as many economic indicators will be out! The USA, UK, and Euro Area will release PMI reports on June 23 from 10:15 to 16:45 MT.
Last week the USD soared versus other major currencies, while gold headed for the biggest weekly loss in 15 months. Let’s see what new moves await us this week!
US PCE Price Index will be out on Friday at 15:30 MT.
Microsoft joined Apple in the $2 trillion dollar club! Follow PMI reports from the US, UK, and EU throughout the day!
The Bank of England will release its statement and announce its monetary policy decision on June 24 at 14:00 MT.