US stock averages stay strong hitting new record levels

Intermediate

11th-15th November 2019

USD

The US Dollar performed well at the beginning of last week, however its strong performance depleted on Friday after disappointing US Retail Sales and because of a more positive outlook for the US-China trade talks. As a result of this, the Dollar Index (DXY) fell 0.4% to close the week just above 98.00.

EUR

The Euro moved mostly sideways last week, however we did start to see some gains after some positive signs from EU economic data. EUR/USD finished the week trading just above the important 1.1050 mark.

GBP

The Pound has just been somewhat sideways as traders patiently wait for the all-important December elections. A No Deal Brexit scenario is now a very low-probability outcome with growing risks now for a Tory majority. GBP/USD finished the week at the 1.29 level.

JPY

A fairly positive week on the Yen front, it found some strength, however, it feels as if the currency is starting to forget it’s all important correlation with the equity markets.

AUD & NZD

In light of last week’s RBNZ rate decision, the RBNZ did not cut rates as expected, which pushed NZD/USD up by 1.2%.

However, the Aussie had a fairly negative week, but managed to make up some of its losses on Friday and only finished 0.4% lower versus the USD.

EQUITIES

Equities remain bulletproof, any slight positive news sees a push higher with US averages hitting new record highs and any negative news seems to be ignored. The S&P500 finished the week up 0.8% to 3117, the DAX traded sideways and finished the week at 13234, whilst the FTSE100 sold off slightly to end the week at  7312.

The Week Ahead

All eyes are on equites, how much higher can they go? This will remain the question for most traders. US President Donald Trump faces some serious problems and will more than likely be pushing to get some positive news out of US-China trade talks to take the spotlight off of his domestic issues.

On the macroeconomic front we see a reasonably quiet week, Manufacturing and Services PMI results will be ones to watch on Friday. Until next week, Happy Trading!

Editor

Bryce has over 3 years of experience managing his own personal investment portfolio. In 2018 he completed a BA (Hons) degree from the University of Sussex in Event Management. He then went on to ta...continued

Comments on this analysis

Your email address will not be published. Required fields are marked *


Latest Related News

Day Trade Ideas: Video analysis – Dollar, WTI Crude, Gold, Emini S&P, Dow Jones

Wide analysis of the US Dollar, Crude Oil, E-Mini Future S&P 500 and the Dow Jones. Also taking a look at Gold and how it is doing in these volatile times. Continued

Pound shifts to more bullish (GBPUSD Forecast)

GBPUSD day trade outlook: Intermediate-term shift to bullish and upside risks  A strong advance Tuesday through key 1.2542 resistance for an intermediate-term shift from neutral to bullish, to build on the strong, very early July rally above 1.2510 resistance and to now also overcome the 1.2580 level to 1.2592, to keep the risk to the upside into Wednesday.  Day trade setup We see an upside bias for 1.2592 and 1.2633; a break here aims… Continued

“Risk on” resumes! Data wins over virus concerns

Macroeconomic/ geopolitical developments Global financial markets have started to resolve the indecisive theme that has been evident from the middle of June into more of a “risk on” bias to start July.Markets have been caught between two competing forces; increasingly positive economic data compared to consensus and the rise in COVID-19 cases (particularly in the southern states of the US, but also in pockets globally).The… Continued

Quiet conditions in Forex

Positives appear on Aussie and Kiwi (AUDUSD and NZDUSD)Whilst Euro-Pound posts a major negative (EURGBP) Continued

Euro still exposed to renewed weakness – EURUSD forecast

The Euro versus US Dollar forex rate, EURUSD has been in an  erratic, but we would argue still negative consolidation range since our last report.This leaves the threat for further EURUSD losses into today, this week and early July. EURUSD day trade outlook: Further consolidation, bias stays lower to key 1.1166 Day trade update and view Again, an erratic consolidation Wednesday with a prod below 1.1189… Continued

Forex Brokers in your location