Yesterday saw risky assets make a small recovery, although both the S&P 500 Index ended the day lower after rejecting the new key resistance level at 4018 which is a bearish sign. However, the NASDAQ 100 Index closed higher. The Hang Seng Index is having a down day today (Tuesday). Overall, the picture on stocks in mixed, but looks less bearish than the end of last week.
In the Forex market, the US Dollar is the strongest major currency today, while the New Zealand Dollar is currently the weakest. The Japanese Yen is weaker after both the nominees for Governor and Deputy Governor of the Bank of Japan emphasised the importance of continuing with Japan’s ultra-loose monetary policy until inflation reaches its 2% target.
Some commodities are performing quite well, with a few continuing to rise after having recently made significant bullish breakouts, notably Sugar and Cocoa.
The US Treasury Secretary Janet Yellen yesterday forecasted a soft landing for the US economy.
There will be a release of US Consumer Confidence data later today.
There will be a release of Canadian GDP data later today.
There will be a release of Australian CPI (inflation) data later today.
Daily confirmed new global coronavirus cases decreased last week for the ninth consecutive week.
Total confirmed new coronavirus cases worldwide stand at over 679.8 million with an average case fatality rate of 1.00%. Daily new confirmed cases have fallen to a low level not seen since May 2020, just after the start of the pandemic.
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.