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The first trading day of the week saw major US equity indices advance for yet another day to reach new record high prices.
- Stock markets are continuing to look mostly bullish. Asian markets are mixed, European markets are more bullish, but the US market is the most bullish of all. The bullishness is especially notable in the US tech sector, with the NASDAQ 100 Index trading above and the S&P 500 trading higher yesterday to make new record highs. The S&P 500 Index just had its best quarter since 2023, increasing in value by more than 10% since April began. Trend and momentum traders will be interested in being long of these indices, and have a choice of CFDs, futures, or ETFs such as SPY and QQQ.
- The US Dollar Index has continued to fall, reaching a new 3.5-year low on declining rate expectations, as President Trump has publicly fumed about getting a new Fed Chair in place, stating over the weekend that rates should be 1% or 2%, not the 4.25% which they currently stand at. This has increased expectations of rate cuts over 2025 from 2 cuts of 0.25% to 3 cuts one at each remaining Fed meeting.
- The Forex market is showing increased price movement and volatility, with the declining US Dollar one of the main market drivers right now. Since the Tokyo open, the strongest major currency has been the Japanese Yen, while the weakest has been the Australian Dollar, putting the AUD/JPY currency cross in focus. The EUR/USD currency pair has continued to advance, reaching a new 3.5 year high above $1.1800 earlier, so trend traders will want to be long here - this currency pair has a great record of respecting its long-term trends. The Euro stands out for its long-term strength, especially as it just reached its highest level since 2014 against the Chinese Yuan. We also see the Swiss Franc (CHF) and the British Pound (GBP) reach new multi-year highs against the greenback.
- Silver remains bullish, although it is still some way off its recent high well above $37.
- President Trump is threatening Japan with higher tariffs unless it agrees to buy more imported rice from the USA.
- Later today there will be potentially high-impact data releases in the USA of:
- JOLTS Job Openings
- ISM Manufacturing PMI