Trade in focus as US stocks reach all-time highs
US stocks ended the week at record highs as the market approved the latest trade news. The Dow crossed the important milestone of $28,000 for the first time in history. On Friday, the Trump administration confirmed that talks with China were continuing and that a deal could be signed. The administration had previously kept markets waiting about progress on trade. The trade issue will be the most important for US stocks this week. The market will also receive important corporate earnings from US retailers like Home Depot and Target.
The price of crude oil declined slightly after the market reacted to the latest protests in Iran. Iranians held some major protests during the weekend. This was in reaction to a new directive by the government that increased oil prices. Some parts of the country saw their oil prices double almost overnight. The Iranian government is trying to raise money as the economy continues to struggle following the US decision to leave the JCPOA. Meanwhile, the market got more information on the Saudi Aramco IPO, that will value the company at between $1.6 trillion and $1.7 trillion.
Asian stocks rose even as protests in Hong Kong reached unprecedented levels. Protestors focussed on the Chinese University of Hong Kong and Hong Kong Polytechnic University and caused significant destruction. The police boss said that his officers would be forced to use live ammunition if attacked directly. In a video statement, the Hong Kong Polytechnic President said that his officials had negotiated and reached a ceasefire with the negotiators. In recent months, the region’s economy has been on a freefall. Chinese and Hong Kong stocks rose today. The Hang Seng rose by 280 points while the Shanghai rose by 17 points.
The EUR/USD pair continued moving in the upward trend that was started a week ago. The pair reached a high of 1.1063, which is above the 38.2% Fibonacci Retracement level on the hourly chart. This price is above the 14-day and 28-day exponential moving averages. The two averages made a bullish crossover last week. The RSI, which has been on an upward trend, rose to a high of 74. There will be no major economic data today. This means that the pair may continue moving in an upward trend to test the 50% Fibonacci level of 1.1083.
The XBR/USD pair rose sharply on Friday and reached a high of 62.98. The pair declined slightly today and reached a low of 62.47. On the hourly chart, Friday’s high was an important line of resistance as evidenced with the red line below. The price remains below the upper line of the Bollinger Bands while the RSI has dropped slightly from 70 to 61. The momentum indicator has continued to soar. The price may likely be a bit volatile as traders wait for the upcoming OPEC meeting.
Sterling has been one of the best-performing currencies against the USD. The GBP/USD pair rose to a high of 1.2930. This is significantly higher than the monthly low of 1.2766. On the hourly chart below, this price is above all of the short and long-term moving averages. The RSI has moved to above the overbought level of 70 while the momentum indicator has jumped to over 100. The pair may continue the upward momentum to test the important resistance level of 1.3000.