Global equities pull back ahead of key US stimulus talks
Global stocks pulled-back today as investors took profits after a strong start of the week. In Europe, the DAX Index dropped by 0.45% while in France, the CAC 40 index fell by 0.10%. In the United States, the Dow Jones futures fell by more than 50 points. The S&P 500 futures have fallen by about 0.20% after closing higher for the past six consecutive days. Some analysts point to the fact that many companies have overstretched valuations. Others point to the ongoing stimulus deliberations in the United States.
Bitcoin price climbed to above $48,000 for the first time in reaction to the decision by Tesla to invest $1.5 billion in the currency. Analysts now believe that other companies will allocate some of their treasuries into the digital currency. That’s because Elon Musk, its CEO is seen as a visionary whose predictions have often played out. For example, he correctly supported electronic payments when he co-founded PayPal. As well as getting ahead of the curve on electric vehicles and space travel.
The euro continued its rally against the US dollar after the relatively strong data from Germany. The country’s statistics office said that exports increased by 0.1% in December, a decline from the previous month’s increase of 2.3%. It was nonetheless better than the expected decline of 1%. In the same period, imports fell by 0.1%, which was relatively higher than the expected decline of 1.1%. As a result, the trade surplus widened from €16.0 billion to €16.1 billion. Elsewhere, in Australia, business confidence increased to 10 in January while the inflation expectation rose to 1.9%.
The EUR/USD price rose to an intraday high of 1.2121 today. As it rose, the price moved above the descending trendline while oscillators like the Relative Strength Index (RSI) and MACD moved above the neutral line. Also, the price has moved above the Ichimoku cloud. Therefore, there is a possibility that the pair will continue rising with the next resistance being at 1.2150.
The GBP/USD price rose to a multi-year high of 1.3790. As it rose, the price managed to move above the important resistance of 1.3753, where it had struggled to move above in the past few weeks. The price also broke-out above the ascending white triangle pattern. Meanwhile, the uptrend is being supported by the short and longer-term moving averages and oscillators like the RSI and MACD. Therefore, the pair will likely continue rising as bulls eye 1.3900, which is the upper side of the ascending channel on the daily chart.
The BTC/USD price rose to an intraday high of $48,340 and then pared back some of those gains. On the four-hour chart, the price is above the dots of the parabolic SAR and all moving averages. Also, oscillators like the Bulls Power, RSI, and Stochastics have also moved above the neutral line. Therefore, the pair will likely keep pushing as bulls eye the next resistance at 50,000.