Português
Español
Français
русский
Market Wrap
It has been a big risk-off day today as the day was dominated by the testimonies of Fed Chair Powell and US Treasury Secretary Yellen. The consumer confidence data that did arrive just after the US futures open came in worse than expected and the sell-off accelerated. There has also been a lot of movement within the walls of power as the Republicans and Democrats attempt to find a way to raise the debt ceiling, pass the reconciliation and infrastructure bill, without either losing face. The stalemate is causing the benchmark yields to rise and now the US10 year is trading 3% higher to 1.536.
See real-time quotes provided by our partner.
The S&P500 has clearly found the resistance after the retest of the trend line and now looks set to travel towards the daily 200 ema. The move could accelerate if the markets believe the US government are about to go into shutdown.
US Senate Majority Leader Chuck Schumer said that he will ask the Senate for consent to hold a vote to increase the debt limit on a simple majority vote, rather than the 60 votes traditionally required.
Treasury Secretary Janet Yellen warned that failure to raise the debt ceiling could lead to “a financial crisis and a calamity.”
The S&P Case-Shiller house price index has risen again to record highs for the 14th consecutive month. There is still a trend of people moving out of city centres into suburban towns as a response to the COVID-19 pandemic.
The forex heatmap shows that the GBP is the weakest of the currencies into the London close even though the fuel shortages at petrol stations are starting to show signs of recovery. The facts are clear that we have a shortage of HGV drivers in the UK to deliver goods and materials around the UK whilst inventories are high, though this is something that can be rectified with a decent government policy but not quickly.
See real-time quotes provided by our partner.
The price of Brent crude came back down from the day’s highs to test the breakout level of $77.55. If this level does hold and we see images of cars cueing for fuel on the daily front pages we could be calling this a support level for the next push higher. A close back inside the previous range is likely on a strengthening US dollar and a decrease in demand but neither look likely this week.
See real-time quotes provided by our partner.
The ActivTrader sentiment indicator once again proves to be a great contrarian indicator as 82% of traders on the platform are bullish the pound as the GBPUSD crashes through the recent support level of 1.3600.
