The S & P500 has been hit by sales in the last few sessions after the brilliant rise in the first week of June. What are the expectations for the next sessions?
The S & P500 closed last week with a negative performance of over 5%.
From the economic point of view, in the last few sessions there have been no macro updates that could have triggered this wave of sales, therefore the most likely cause of this drop could be identified in the profit taking by operators.
However, it cannot be excluded that the sharp increase in cases in some parts of the United States, such as Florida and California, is bringing a new wind of uncertainty.
The words of the Federal Reserve’s number one, Jerome Powell, who said that the rates will remain unchanged until 2022, but the market, obviously, was expecting something more, also disappoint.
Currently, Fed Funds’ futures expectations have aligned with what the Fed’s words were.
From an operational point of view, the outlook remains negative on the S & P500 index: always from a speculative point of view we can identify as an area of potential target to the downside that of 2,800 points.
The Dax suffered a heavy fall last week. Is the corrective movement destined to last in the short term?
The German index follows the correlation with the American price lists and also closes a week in the red, recording a 7% loss.
The German economy suffered a strong setback in April as regards industrial production, which recorded a drop of over 17%, exceeding the expectations of operators and marking a contraction that had not been seen since 1991.
The balance of the trade balance was also bad also for the month of April.
From an operational point of view, for Dax the outlook is the same as for the S & P500, given their strong correlation.
Always pay attention to the volatility differences between the two indices.
The euro-dollar has failed to break the 1.14 area and has gone back more than one figure. What do you expect for the cross in the short term?
The euro-dollar closed last week with a slight decline of 0.27%.
An octave that just passed that between disappointing macroeconomic data on the Eurozone front and a demand for safe assets, weakened the exchange rate.
The greenback has recovered in the past two sessions since President Powell’s speech.
It is important to monitor the Eurogroup videoconference to be held on Friday for the week that begins today, in which members will discuss the Recovery Fund to support the economies of the Eurozone countries.
On this occasion, the prospects of the single currency for the medium-long term will be decided, so let’s expect a sparkling week.
From an operational point of view, the euro-dollar exchange rate is well set to continue its upward trend, however it would be better to wait for a further transfer of at least 50 pips to evaluate new long entries, with weekly targets of around 200/250 pips.
What can you tell us about the recent trend of gold and what operational strategies can you suggest to us now?
Gold stood out a bit turbulently this week and closed with a gain of over 3%, reaching near the highs of the period.
The gold benefited from the risk-off week, returning close to $ 1,750 an ounce.
Yellow metal accelerated sharply after the worse than expected macroeconomic data in Germany and England.
In particular, the latter recorded a drop in GDP of over 20% on an annual basis, marking a historical record.
All this has led to an increase in the demand for this commodity.
From an operational point of view, the view for gold continues to be long with a first target around $ 1,800.