Forex Today: S&P 500 Reaches 4500

Adam Lemon

Stock markets outside Asia and risky currencies rose again yesterday.

  • Stock markets outside Asia continued their strong recoveries from last week’s dip, especially in the U.S. where major indices such as the S&P 500 and the NASDAQ 100 broke to new record highs. The S&P 500 Index hit the big round number of 4500 for the first time ever, but was unable to really get beyond that level which may see some profit-taking. If the price can get established above 4500 it will be likely to rise higher over the short term.

  • In the Forex market, the USD and JPY are in strong long-term bullish trends, but the short-term price movement has been counter to that this week, with risk currencies yesterday bid against the USD, JPY, and CHF. The currencies showing the greatest long-term weakness are the CAD, the AUD, and the EUR, so if the bullish USD trend resumes, these will likely be the currencies to focus on as short counterparties for that trade.
  • Today is likely to see much higher volatility in the financial markets due to the scheduled start of the Jackson Hole symposium and a release of preliminary U.S. GDP data. The symposium will be closely watched for any definitive statements from the Fed about the timing of tapering of QE.
  • Last week saw a ninth consecutive weekly rise in global new confirmed coronavirus cases, although the pace of the increase has slowed significantly. Some countries have begun giving booster vaccinations to individuals who were already vaccinated some months ago, which seems to be providing sharply increased protection.
  • It is estimated that 24.8% of the world’s population has been fully innoculated against the novel coronavirus.
  • Total confirmed new coronavirus cases worldwide stand at over 214.7 million with an average case fatality rate of 2.08%.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Albania, Armenia, Australia, Azerbaijan, Belarus, Bosnia, Brunei, Bulgaria, Canada, Cuba, Ethiopia, Germany, Guatemala, Israel, Japan, Kosovo, Malaysia, Moldova, Mongolia, Montenegro, North Macedonia, New Zealand, Norway, Philippines, Serbia, Sri Lanka, Switzerland, the U.S., the U.K. and Vietnam.
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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