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Five things traders need to know today

πŸ“‰US and European stocks continued the decline last week as the strong economic data boosted the taper expectation. The Hang Seng Index tumbled nearly 5% on worries of Evergrande’s default risk. Nikkei 225 gained for a fourth straight week. Germany's DAX 30 will be upgraded to DAX 40 today.

😟 Gold fell 1.9% on the week to $1,753.83 amid the rising Treasury yields, while Silver lost 5.7% to the lowest level since early August. WTI crude (SpotCurde) jumped above $72. Bitcoin traded near $47,000 over the weekend.

πŸ’² The US dollar index (USDX) regained 93 as the yield on 10-year Treasury rose to 1.36%. The FOMC meeting this week is expected to offer more clues on the Taper timeline. USDCHF broke above the 2.5-year-old negative trendline to 0.9322.

⏬ EUR extended the losses to 1.1725 amid the USD strength. GBP ended the week lower at 1.3727 despite UK’s strongest CPI growth since 2012. The Bank of England is scheduled to meet this Thursday.

πŸ”» AUD posted a 1.2% weekly loss and closed at a three-week low of 0.7264. NZD was lower at 0.7034, shrugging off the better-than-expected Q2 GDP in New Zealand. USDCAD rose to 1.2769.
What we know from the US Central Bank Meeting so far:

1) Taper as expected by $15bln a month. But want to retain flexibility based on economic outlook

2) Nice little break glass in case of emergency "expected to be transitory" clause inserted in the statement in regards to inflation.

3) Now we have to see if Powell pushes back against market's aggressive rate hike pricing.

Dollar happy - Gold unhappy
Happy Monday Everyone! 😍πŸ₯°
Five things traders need to know today

πŸ˜ƒ US stocks extended the rally on the lower Treasury yields and strong-than-expected employment data. Russell 2000 outperformed by a weekly gain of 6%. While most European and Asian indices ended the week higher, mainland China and Hong Kong benchmarks were the losers.

↕️ Gold jumped to a two-month high of $1,817.83 as central banks pushed back rate hike expectations last week. WTI crude (SpotCrude) declined for a second week to $81.38. Bitcoin was above $62,000.

πŸ’΅ The US dollar index (USDX) was little changed at 94.14, retreating from a fresh yearly high of 94.57. The yield on 10-year Treasury slumped to 1.45% (-6.55%), pushing USDJPY lower to 113.38, the lowest close price in three weeks.

πŸ‡ͺπŸ‡Ί EUR was largely unchanged last week at 1.1566 near the 200-week SMA, hitting the lowest level since July 2020 on Friday. GBP fell below 1.35 after the BoE surprisingly kept the rate unchanged, with the UK two-year yield -43% on the week.

🌏 AUD, the weakest G10 currency last week, traded toward 0.7400, ending a five-week winning streak. NZD ended lower at 0.7119. USDCAD continued the recovery to 1.2456 on the back of weak crude prices.
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For those who missed, Bitcoin has made a new all-time high and the whole crypto scene is moving strongly - one for the radar
Five things traders need to know today

πŸ‘ US stocks kicked off the week with small gains after the Congress passed the $1tn infrastructure bill, with the S&P 500 closing above 4700 for the first time. Tesla -4.84%, with 58% of Twitter respondents favoured share selling. Most European and Asian indices closed lower on Monday.

πŸ†™ Gold extended the gains to $1,824.21. WTI crude (SpotCrude) edged higher to $82.37 as Saudi Arabia raised its crude prices to Asia. Bitcoin surged to a fresh record high in early trading hours.

πŸ’² The US dollar index (USDX) dipped to 93.96, while the yield on 10-year Treasury struggled below 1.50%. USDJPY fell for a third straight day to 113.22, the lowest close price since mid-October.

πŸ˜ƒ EUR ended higher at 1.1586 despite the fourth wave of Covid-19 across Europe. The ECB reiterated that the inflation is β€˜transitory’. GBP rebounded to 1.3566 amid the USD weakness.

πŸ₯ NZD (+0.63%) jumped to 0.7164 and led the G10 overnight. New Zealand’s largest city is set to ease restrictions on Tuesday. AUD climbed to 0.7424 despite the front-end yield continuing the correction. USDCAD was slightly lower at 1.2441.
Five things traders need to know today

πŸ”» S&P 500 ended an eight-day winning streak on Tuesday and Dow and Nasdaq also retreated from all-time highs. Financial sector underperformed amid lower US Treasury yields while Tesla (-12%) dragged the consumer discretionary. Major European and Asian indices were in red, with Hang Seng +0.2%.

🌟 Gold rose for a fourth straight session to $1,831.80, approaching the key resistance level. WTI crude (SpotCrude) extended the gains to $84.72 as US crude inventories unexpectedly decreased by 2.5 million barrels last week. Bitcoin and Ethereum made fresh record highs.

πŸ’΅ The US dollar index (USDX) edged lower to 93.89 as the yield on 10-year Treasury continued the downward trend. US PPI missed estimates in October and CPI data is due out today. USDJPY dropped to its lowest level in four weeks.

πŸ‡ͺπŸ‡Ί EUR closed just below 1.16, helped by strong German ZEW economic sentiment. GBP ended slightly lower at 1.3558. Safe-haven CHF strengthened against the greenback.

⏬ AUD (-0.62%) was down to 0.7378 as risk appetite turned sour, despite NAB survey showing strong business conditions and confidence in Australia. NZD (-0.51%) slumped to 0.7127. USDCAD was little changed at 1.2435, sitting just above the flat 20-day SMA.