EU Bullet Report | SP500 Rises most in 2 months as OIL recovers

• Today’s calendar is relatively thin, with the only news standing out being UK industrial production as well as GDP estimate for Q2. The USD continued to strengthen against major currencies yesterday. Looking ahead, the collapse in the USD last week could signal the end of the USD selloff, for now.

• Stocks: this week is more positive for stocks that then one before. SP500 rose 1.3% yesterday which is the highest increase in 2 months, and most of Asian stocks are bouncing from near 2 month lows. European stocks are also recovering relatively from last week, in a move that could tbe attributed to higher commodity prices. Meanwhile, China’s Shanghai SSE composite turns negative at the time of writing.

• Currencies: USD continues its rise against the other majors, with only exception Versus the JPY, which surged yesterday on intervention talks but pared some gains. The USD got broad support from comments by a top Federal Reserve official last week, which kept alive otherwise diminishing hopes of a Fed rate hike following weak U.S. payrolls data on Friday. New York Fed President William Dudley said that it was reasonable to expect the U.S. central bank would raise rates twice in 2016.

• GOLD and OIL: Oil prices were supported by crude supply outages in Canada, Nigeria and elsewhere. Brent crude futures LCOc1 dipped to $45.32 per barrel, having jumped 4% on Tuesday. U.S. crude futures were at $44.51 per barrel. Both were off about 0.3%. Gold stood near its lowest level in 1-1/2 week on Tuesday, following sharp losses overnight, as the USD halted its advance helping some demand on gold as an alternative investment. Gold has faced some pressure on profit taking after climbing to a 15-month high of $1303.58 to post a weekly loss the previous week. The yellow metal has dropped in five out of the past five sessions, but the metal is still 19% higher this year.

The post EU Bullet Report | SP500 Rises most in 2 months as OIL recovers appeared first on Forex.Info.

Source:: EU Bullet Report | SP500 Rises most in 2 months as OIL recovers