The USD/CAD currency pair traded at a new 4-month low yesterday, with the Canadian dollar gaining on rising crude oil prices.
➡️ The USD/CAD currency pair fell to a new 4-month low yesterday, driven by rising crude oil prices, which could receive a tailwind from Houthi attacks on shipping in the Red Sea area. At the time of writing, the price is bouncing off this low, although the US dollar is mostly weak this morning after gaining yesterday.
➡️ Stock markets mostly fell yesterday, including in the United States, where the NASDAQ 100 index set a new all-time high and the benchmark S&P 500 index hit a new 23-month high earlier this week. However, stock markets are now recovering again. The bullish environment is caused partly by the weakening of the US dollar and partly by a more accommodative expectation regarding the Fed's rate cuts in 2024.
➡️ British inflation data released yesterday showed a surprise decline at an annualized rate of 3.9% while expectations were 4.3%. This is believed to lead the Bank of England to take a more accommodative approach and implement rate cuts totaling 1% over the course of 2024.
➡️ In the Forex market, since the Tokyo open, the Australian dollar has been the strongest major currency, while the New Zealand dollar has been the weakest, although the numbers are small enough to be mostly meaningless. There appear to be no good long-term trends to exploit in this asset class at the moment, although with the US dollar weakening again, all eyes will be on the EUR /USD long-wise if we get a daily close above key resistance. level at $ 1.1008.
➡️ Crude oil continued to rise strongly after trading at a new 6-month low, reaching a new 2-week high, as attacks on ships in the Red Sea by Houthi forces prompted major shipping companies to refuse to ship transit goods through the Red Sea. The United States says it will mount a military operation to fully reopen the Red Sea to shipping traffic, which could mitigate this increase.
➡️ Bitcoin appears to have found support at the $40,907 level and is now climbing firmly towards the recent long-term high above $44,000. Trend traders will be interested here on the Long side.
➡️ Cocoa futures they remain within a valid and very strong long-term uptrend and closed at multi-year highs yesterday. Trend traders will be interested here on the long side.
➡️ Yesterday, data on consumer confidence from US central banks were published, which were significantly higher than expected, suggesting a good resilience of the US consumer economy.
➡️ Today the following will be released:
- Final US GDP data, expected to show annualized economic growth of 5.2%.
- Data on unemployment claims in the United States.
Credit by DailyForex.com
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