After a week of consolidation the U.S stock market soared higher at the opening bell, gapping up to close the session with gains of over 2.5%. Not even the 200 day moving average stopped the intraday rally on the S&P500, as the major indices held onto its gains, closing for the first time in over a year above the average. Even though volume on the index wasn’t dramatically high, investors rushed into riskier assets, driving stocks higher.
Economic data also had a major impact on yesterday’s session, as manufacturing PMI from all the regions showed an increase while construction spending showed a positive 0.8% in the U.S. In addition personal income increased the overall sentiment, as the result showed a 0.5%.
Monday the 2nd of June, stated a turning point for General Motors as the large company filed for bankruptcy chapter 11. During yesterday’s session GM won an approval to auction assets to create a new automaker based on Obama’s eco-friendly cars. In the short term, the plan will involve numerous job cuts and closing of factories, yet in the long term the company is expected to emerge with much stronger foundation.
The Euro drives forward
Risk appetite continued to drive the Euro forward during yesterday’s session as the Dollar weakened across the board. The Dollar index dropped yet again during the session but quickly retraced towards the second half of the day. Even though Dollar weakness is expected to continue one should observe the price action, yesterday’s session formed a hammer like candle, something that could present a short term reversal. To date the Dollar index is trading around recent lows, a level that could act as support, should equities fail to follow through from yesterday’s session.
On other Forex pairs, recent momentum continued with the AUD, GBP and NZD all climbing higher. On yesterday's video briefing we mentioned a potential setup on the EUR/JPY. It is important to note that even though the trade did follow through climbing by over 200 pips, the pair has yet to break it prior high of ¥137.40. While this pair is now presenting early signs of a break of its current bullish triangle pattern, the equity market should continue to be observed, as this pair, similar to others, will continue to take its cue from stocks.
Crude oil continued higher, closing the session above $67 per barrel on overall market momentum and a decreasing Dollar.
Economic Data to Watch Out For
Compared to yesterday’s session, the economic calendar is relatively light on data today. The major event is expected to be released at 9:00 GMT from Europe, as the Euro-zone is scheduled to release its unemployment figure. Despite a rising equity market, unemployment is expected to show further problems in the Euro-zone as the rate will top 9%.
In addition, the U.S is scheduled to release its pending homes sales for the month of April.
To view the full economic calendar click here.
Economic data also had a major impact on yesterday’s session, as manufacturing PMI from all the regions showed an increase while construction spending showed a positive 0.8% in the U.S. In addition personal income increased the overall sentiment, as the result showed a 0.5%.
Monday the 2nd of June, stated a turning point for General Motors as the large company filed for bankruptcy chapter 11. During yesterday’s session GM won an approval to auction assets to create a new automaker based on Obama’s eco-friendly cars. In the short term, the plan will involve numerous job cuts and closing of factories, yet in the long term the company is expected to emerge with much stronger foundation.
The Euro drives forward
Risk appetite continued to drive the Euro forward during yesterday’s session as the Dollar weakened across the board. The Dollar index dropped yet again during the session but quickly retraced towards the second half of the day. Even though Dollar weakness is expected to continue one should observe the price action, yesterday’s session formed a hammer like candle, something that could present a short term reversal. To date the Dollar index is trading around recent lows, a level that could act as support, should equities fail to follow through from yesterday’s session.
On other Forex pairs, recent momentum continued with the AUD, GBP and NZD all climbing higher. On yesterday's video briefing we mentioned a potential setup on the EUR/JPY. It is important to note that even though the trade did follow through climbing by over 200 pips, the pair has yet to break it prior high of ¥137.40. While this pair is now presenting early signs of a break of its current bullish triangle pattern, the equity market should continue to be observed, as this pair, similar to others, will continue to take its cue from stocks.
Crude oil continued higher, closing the session above $67 per barrel on overall market momentum and a decreasing Dollar.
Economic Data to Watch Out For
Compared to yesterday’s session, the economic calendar is relatively light on data today. The major event is expected to be released at 9:00 GMT from Europe, as the Euro-zone is scheduled to release its unemployment figure. Despite a rising equity market, unemployment is expected to show further problems in the Euro-zone as the rate will top 9%.
In addition, the U.S is scheduled to release its pending homes sales for the month of April.
To view the full economic calendar click here.
About the Author
Dodjit was developed with the idea of simplifying the Forex and stock market, while providing more experienced investors with vast material to catch up on various new events. From market reports to chart analysis, our team of traders provide vast information, while allowing traders to fully understand and follow the market.
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