News for The Week
US stock markets started falling, while the US dollar is rising. What to expect from
The Worst Day for Bears Ever
Bloomberg says yesterday’s movement was so far the wildest. It was the first time in history for the US500 to crash by 2% and close the day 2.8% above the neutral line. There’re several possible reasons for the move. First is an enormous amount of PUT options (an option that profits when an asset falls). Even a slightly good reading may cause a squeeze when most traders are shorting.
The second possible reason is good expectations for the upcoming earnings season. Today, Citigroup, Wells Fargo, and JP Morgan will release their earnings before the market open. Banks usually benefit from high inflation. However, the housing market is under pressure, raising concerns about banks’ revenue expectations.
Technical analysis
The US500 chart looks great for short-term traders. On the M15 timeframe, we can look for a reaction on the support area and a bounce to the 50-period MA. After that, we expect a decrease because many traders bought the index yesterday and will try to close part of their orders before the weekend.
US500 M15 chart
Resistance: 3680, 3700
Support: 3640
What else to look after?
- US will release Retail Sales and Core Retail Sales at 15:30 GMT+3, affecting EURUSD and USDJPY.
- FOMC Member Waller will give a speech at 19:15 GMT+3.
- GBPUSD is near the resistance trendline (1.1400). The pair may slide lower to the support of 1.1900.
- Elon Musk is under investigation by Federal authorities because of his suspicious activity over the Twitter deal.
- Risk-off sentiment returned to oil markets, causing a sideways movement in XBRUSD.
Subscribe to the FBS Analytics Telegram Channel, where I post more daily trade ideas!
Similar
Inflation Is in Focus Again
Oil prices are rising and Russia banned the export of its petrol. What's happening in the markets?
GBPUSD May Strengthen Resulting the Fed and The BOE Meetings
In today's market insights, we delve into Citibank's oil price predictions, the evolving competition between Huawei and Apple, the Saudi Arabia-Tesla partnership, and the upcoming rate decisions from the world's major central banks.
Latest news
The US Dollar Is Correcting
Inflation in Europe was released better than the forecast. The preliminary fact was published at 4.3%. What's happening in the markets?
Bearish Signal For The USD
XAUUSD fell below 1900 for the first time since March 2023. Meanwhile, the US dollar index gives a bearish signal. Read the full report to learn more!
Current Risks for Developed Economies
Oil prices are rising while the US government is on the verge of shutting down. How will it affect the market?
