The US equity markets have opened higher today, on the back of new orders for durable goods in the United States riding by 0.5% in March. Positive risk sentiment also returned to the markets as JPMorgan Chase & Co. signalled, they are to launch a fund that actively manages bitcoin. The rise in BTCUSD was around the 5% at the US open and 9% by the London close, after the crypto giant had tumbled nearly 30% over the weekend. This week is full of earnings reports which will include Tesla, NXP Semiconductor and Lennox.
With Tesla kicking off the earnings this week the Nasdaq 100 started the trading session: Higher with Tesla being up around 2.5% before it slipped below its opening price at the London close. Apple, Microsoft and Amazon are all trading around their opening prices today, but the Nasdaq is holding up well.
XLE the energy ETF is making good gains today as oil bounces off its day’s lows just above $60.50 and finishing the London session at $61.70. Oil had fallen more than 1.5% in early trading as Covid-19 cases surge in Asia adding to worries that a recovery in fuel demand may be hindered for longer. India continues to see record numbers in infections and Japan is starting more lock down restrictions in cities like Tokyo.
Earlier today the Ifo Business Climate indicator for Germany rose to 96.8 in April 2021, which was below market expectations of 97.8. The consensus is that this is still good news as the latest reading was the highest since June 2019 and signalled an improvement in business morale. The DAX ended the London session green but the EURUSD slipped lower from the start of the European session to close around the 1.2080 at the end of the London session. German politics is going to have quite a lot of influence over the European bourses in the coming weeks and months as we are seeing the Green party’s rating rising to as much as 29% ahead of the German federal election scheduled for September 26.
The EURUSD is technically still very bullish with the 50 ema and 200 ema stacked on top of each other in a rising manner. With the grind higher in a tight rising channel, there is a real chance that the EURUSD could make a dash lower to check in with the 50ema on the daily time frame but the DXY is not showing any signs of strength so the grind in the single currency looks likely to stay.
The ActivTrader sentiment indicator shows that 66% of retail traders are bearish and this type of environment will be frustrating for them.