Stocks Rebound & Sterling Climbs Higher: Market Update
AvaTrade | Jun 13, 2017 07:17AM ET
Asian stocks are higher this morning as equity markets try to shake off yesterday’s sharp sell-off. Global stocks are still trading just 0.8% below an all-time high.h3 US Equities/h3
Stocks are inching higher this morning after yesterday’s decline. The Fed will probably lift rates on Wednesday which should support the banking sector.
Watch out for increased volatility as Attorney General Jeff Sessions will testify today before the Senate Intelligence Committee. Sessions will be asked to explain his role in firing former FBI director James Comey and be probed on the ties Donald Trump has with Russian officials.
h3 European Equities/h3European sentiment will be closely tied to US movements thanks to the flurry of news coming from Washington and the Fed.
All European equities are feeling more positive today, apart from the FTSE 100 which is slightly down thanks to the stronger pound.
h3 /h3 h3 Forex/h3 h3 GBP/h3After last week’s disappointing win for Theresa May the pound is finally starting to make some gains. The general election left Britain with a hung parliament, forcing May to scramble to form a government with the controversial DUP party.
The pound’s moving averages and momentum are moving upwards, which may mean bullish tones in the coming days.
h3 /h3 h3 USD/h3The dollar is flat in the run-up to Wednesday’s interest rate decision as investors await the highly-anticipated statement given by Fed president Janet Yellen.
The dollar may add to gains if Yellen’s speech is positive or ‘hawkish’. However, with lagging economic data the president may be on the ‘dovish’ or negative side about the prospects of the US economy.
h3 /h3 h3 EUR/h3German WPI m/m came in much lower than the expected 0.2%, instead amounting to just -0.7%. The disappointing data sent the euro 0.1% lower.
h3 /h3 h3 EURUSD/h3Momentum is ticking upwards for EURUSD with resistance level at 1.1285.
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The New Zealand dollar is the biggest winner of today, up 0.3% against the greenback thanks to the increase in energy prices.
h3 JPY/h3Japanese yen is flat as investors ease off on safe-haven assets.
h3 NZDJPY/h3Possible bullish sentiment with a resistance level of 79.75 due to an upward sloping moving average.
h3Trading upwards of 4.5% this morning, at $2723. After plummeting on Monday thanks to investor concerns about the fast expansion of the digital currency system, Bitcoin rebounded.
Bitcoin recently hit an all-time high after Chinese exchanges were allowing withdraws of the digital asset after months of investors waiting.
Bitcoin remains 150% higher for the year 2017.
h3 /h3 h3 Ethereum/h3On Monday, this digital asset smashed records, adding more than 5000% to its value since the beginning of 2017.
The rally comes after Russian president Vladimir Putin endorsed the cryptocurrency.
“The digital economy isn’t a separate industry, it’s essentially the foundation for creating brand-new business models,”
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