US equities continue to new highs

US equities continue to trade higher, all making record highs as we see a second wind come into markets. The DJIA finally broke the 20k mark as it closed in the green yesterday, finishing up 0.78% while the S&P 500 gained 0.8% and the NASDAQ an impressive 0.99%. The renewed buying has come on the back of Donald Trump’s executive orders which have relaxed regulation in favor of business. Markets will continue to climb if Trump continues to clear the field for businesses while we might see some profit taking should he change his tone at all.

 

26-Jan 14:30 US Equity Markets Open DJIA

 

GBP continues to climb ahead of key data

The GBP broke through stern resistance at 1.2500 against the dollar to trade higher after PM May is said to be releasing a draft of the requested whitepaper that parliament has insisted on, further stabilizing the events surrounding the Brexit vote. Markets will remain sensitive to data out of the UK, with today’s Prelim GDP q/q likely to result in volatility with a better than expected release resulting in further upside in the GBP while a worse than expected release will see the GBP under pressure as seller renter the market.

 

26-Jan 09:30 UK Prelim GDP q/q GBPUSD

 

USD Selling intensifies as key support is tested

The USD Index, which measure the strength of the USD against a basket of its peer nations, continue to straddle the 100 mark, a key support area which if broken will see a significant sell off of the USD. Today’s Unemployment Claims, expected at 247k, will offer an opportunity for both buyer and seller to take control of the direction of the USD. A better than expected release will see the USD strengthen while a worse than expected release will see the 100 mark broken as the USD is sold aggressively.

 

26-Jan 13:30 US Unemployment Claims EURUSD