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U.S Stocks Finally Came Up For Air
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The U.S stock market traded mixed for most of yesterday’s session, but with a half an hour to go buyers came back into the market, pushing the major indices into positive territory. The start of the session was characterized by a gap down, as economic data coming out from the U.S had a major impact on investor’s sentiment.
Existing Home Sales increased at a much lower rate compared to last’s month’s sales, while initial Jobless claims climbed yet again showed that U.S economy was flooded with further job losses. March’s Existing Home sales declined significantly dropping to a 4.57m versus expectations of 4.65m.
The Financial sector was yet again the leader of the day thanks to a large bounce in banking stocks. PNC financials reported better than expected results helping to support the late momentum.
The S&P500 closed the session up by 0.99%, while the Nasdaq finished with a mere 0.37% gain.
Did Currencies Find Support?
Economic data helped individual pairs on the Forex market yesterday as both manufacturing PMI in the Eurozone and Service PMI in Germany showed an increase. As stated in the video briefing, the EUR/USD flip sided during the session climbing back above support of $1.3080. Strong fundamentals from the Euro zone helped to drive this pair higher, showing investors that the upcoming rate cut might be such a large one.
The major mover of today’s session is the USD/JPY dropping below trend line support. After finding support around the 98 level, this pair dropped during early hours and is now trading around 96.77. The USD/JPY failed to present a reversal candle over the last couple of trading days, finally giving in to the selling pressure last night. One must note that this pair is currently trading around major support, a price level that presented a reversal pattern several times in the past.
Please note that the GBP/JPY has failed to form any major movement and should be observed carefully for a break out.
Commodities
Crude oil has failed to present any major movement over the last couple of trading days lingering around major support of $48.50. Even though broad weakness is preventing this commodity from rising, one should observe the price pattern. A clear break above the 50 level could signal further strength. In addition, the moving averages on the MACD are beginning to converge while the RSI is heading over the 50 mark.
Market Data to Watch Out For
Looking forward, retail sales will be released in the England shortly, something that could cause major movement on GBP crosses. While the sector is expected to show a further contraction, it should show a better than expected figure compared to last month’s -1.9%.
Furthermore, the U.S will be releasing its widely watched Durable goods today, followed by New Home Sales. Yesterday’s Existing Home Sales didn’t show much of an encouraging figure, therefore investors will be scrutinizing the data today, hoping for a better result.
Finally Treasury Secretary Geithner is expected to release his comments regarding methods to help stabilize the banking system during the U.S session.
Market Pivot Points
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