Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.
Will the USD keep strengthening against safe havens?
2021-03-02 • Updated
Despite Monday’s optimism, a new day has brought some cautious moods to the market. It seems like rising bond yields keep investors worried. Another reason for this sudden switch in risk sentiment lies in comments by China’s banking and insurance regulator. During the Asian trading session, it expressed worries about existing bubbles in foreign markets. Now, China is researching the possibility of preventing turbulence in its market.
The gloomy outlook increased the demand for the US dollar. Notably, the USD advanced against the so-called “safe-haven” currencies: the Swiss franc and the Japanese yen.
On the daily chart of USD/JPY, the pair has been trying to stick above the upper border of the ascending trading channel. The USD pushed the pair almost as high as 107. This is a very strong resistance marking the last August’s peak. On the downside, the closest support is placed at 106.6. The breakout of this level will provoke a further slide to 106.1. The signal line of the stochastic oscillator has almost entered the overbought zone. You may use the crossover of the stochastic oscillator’s two lines for an additional signal for shorts.
Unlike USD/JPY, USD/CHF has already left the trading channel and surged to a high of 0.92. The next resistance is placed at 0.9240. In case of correction, wait for the pair to reach the 0.9085 level. You can use the crossover of stochastic in the overbought zone (above 80) as a confirmation for a sell here as well.
If we talk about the future of both of these pairs, it mainly depends on the USD-related news. The closest major event for the US currency is the non-farm payrolls this Friday at 15:30 MT time. Thus, we may see some interesting swings in the performances of USD/JPY and USD/CHF.
When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.
The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.
After creating record highs, Wall Street's main indexes opened on Wednesday and began to edge lower, reflecting cautious sentiment among investors. They're eagerly awaiting crucial inflation data that could impact the U.S. Federal Reserve's interest rate decisions. The upcoming release of the personal consumption expenditures (PCE) price index is expected...
The month of February saw markets make several instinctive moves as well as create opportunities for proper leveraging of fundamental releases. Despite being a leap-year, there wasn’t any real impact on price delivery in the course of the month. As we await the opportunities that lie ahead in the month of March, here are a few thoughts to consider.
USD/CHF saw a rebound after declining for two days straight, climbing towards the important psychological level of 0.8800 during Wednesday's early Asian trading session. There's some pressure on the Swiss Franc (CHF) as traders await the Swiss ZEW Survey – Expectations report scheduled for later today. Moreover, investors are keeping...