Forex Today: Stocks Fall and Dollar Rises as Trade Deal Euphoria Dissipates

The announcement of a trade deal between the EU and the USA has sent markets firmly into risk-on mode, with US stock markets leading the way to new all-time highs, and the Euro advancing.

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1. Most stock markets sold off over the past day following the strong gains made by many markets over recent weeks, notably in the USA. However, most markets remain within long-term bullish trends which are likely to reassert themselves. The selloff was likely due to the previous short-term excitement about the EU/USA trade deal, but in the cold light of day, a new 15% is still a 13% increase and an additional barrier to trade between two of the largest blocs in the world.
2. The US Federal Reserve is holding a policy meeting tomorrow and is seen as almost certain to leave its interest rate unchanged, according to the CME FedWatch tool. The US Dollar is continuing to rise strongly after its big gain yesterday, reaching very close to a new 1-month high at the time of writing.
3. In the Forex market, the Tokyo session has been relatively quiet, with small price movements, showing the Euro as the weakest major currency and the Japanese Yen as the strongest. The EUR/USD currency pair remains in a valid long-term bullish trend, but the price has fallen strongly to trade below $1.1600.
4. In the crypto world, Ethereum is rising again after falling from a price near the big round number at $4,000 on Sunday. Trend traders will probably be looking to get long of Ethereum. Futures are available but there are also Ethereum ETFs which many traders will find more affordable. Bitcoin continues its bullish consolidation below the major resistance level at $120.055.
5. Precious metals are established in valid long-term bullish trends, including Gold, Silver, Platinum, and Palladium. However, all are trading lower and look set to fall further today as the US Dollar advances.
6. The industrial metal Copper has recently made fresh all-time highs but has sold off quite strongly like everything else which has been trending higher lately, and the price is not very far from invalidating the trend technically.
7. There will be a release of US JOLTS Job Openings data today.

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