Forex Today: Bullish Stock Markets

 Global stock markets are mostly bullish, with Japanese indices and the NASDAQ 100 index advancing to new long-term highs.


  1. Stock markets are mostly bullish. Friday saw the NASDAQ 100 Index reach a new 9-month high and the NASDAQ 100 Index reach new 18-month highs. The broader market is showing signs of starting to keep up with the tech market, as the S&P 500 Index reached a new multi-month high as well. Japanese stocks are rising especially strongly, with bulls firmly in control. The TOPIX has reached a new 33-year high, while the Nikkei 225 Index will again close at a new 18-month high today. The Japanese stock market is currently outperforming most other stock markets. The bullishness is due to strong fundamental data, Japanese companies and banks booking record profits, and a bullish sentiment reinforced by bullish momentum. Trend traders might find being long of the Japanese stock market attractive right now, as well as other major indices breaking strongly to new highs like the NASDAQ 100.
  2. In the Forex market, the US Dollar is opening the week by selling off, in line with its long-term trend. Action has been dominated so far today by weakness in the US Dollar and strength in the New Zealand Dollar. Trend traders will probably be looking for long trades in the USD/JPY and GBP/USD currency pairs, with the former reaching a new 5-month high last week.
  3. Some soft commodities have been breaking to new highs and trending strongly, notably the Cocoa ETF NIB, which rose very strongly Friday to close at a new 5-year high.
  4. The US debt ceiling impasse continues, which may cause market volatility. President Biden and the House Speaker will be meeting later today to try to resolve the issue.
  5. There are no economic data releases of high importance scheduled today, so it may be a relatively quiet day in the market.
  6. It is a public holiday today in Canada.
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.