The Currency Scene:
News, Events, and Stories about currency from around the world.

S&P 500, DAX, FTSE: Risk Trends in the Spotlight Ahead of FOMC, NFP

Talking Points:

Forecast for the S&P 500: Neutral

The Quarterly Forecast for the S&P 500[1] have just been released for Q2, Click here for full access to the DailyFX Q2 Forecasts[2].

Next week’s economic calendar[3] brings an intense focus on to US-related items, and the breakout that took place in the US Dollar this week[4] will very much be in question. On top of a rather stacked macro-economic calendar, we’re in the thick of earnings season and we’ll see a number of big US names reporting next week: McDonalds reports on Monday, Apple reports on Tuesday and Tesla reports on Wednesday in what will be a widely-watched earnings call for signs of trouble at the auto/battery maker.

Earnings were fairly strong this week, led by a strong beat from Amazon. But, the net of that strength in earnings has been a simple doji in the S&P 500, further evidence that other factors are at work here[5]. This narrows the index further into the wedge pattern that’s been building since early-February; highlighting the fact that a ‘big’ move may be on the horizon, in one direction or the other, as prices congest after a historically strong nine-year bull market.

S&P 500 Daily Chart: Narrowing/Congesting Price Action After Volatility Comes Back in Q1

S&P 500, DAX, FTSE: Risk Trends in the Spotlight Ahead of FOMC, NFP

Chart prepared by James Stanley[6]

This congestion leaves the S&P in a rather neutral state on a longer-term basis. While that prior bullish trend has yet to reverse, an increase in volatility similar to what we’ve seen since early-February is often indicative of a shift in market behavior or mood; and as confirmation, the

Read more from our friends at Daily FX:

Pin It

The Logo Story

currensceneFLOGO WHTsquareThough not the oldest form of currency, some form of shell money appears to have been found on almost every continent. The shell most widely used worldwide as currency was the shell of Cypraea moneta, the money cowry.

Visit the CurrenScene Media Page