USD INDEX
A moderately bullish day adding to the uptrend. Safe-haven buying in the face of the middle east conflict, inflation concerns as a result of higher oil prices, and higher interest rates confirmed with yields rising across the board. The USD strengthened against the majors as well. Note the relevance of the pivotal 100.00 mark which has acted as both resistance and support. Buyers will aim to add to, or at least maintain above the 101.00 level.
S&P 500
The index had a strong rebound today, breaking a 3-day losing streak. Investors looked (optimistically) beyond higher oil prices as earnings season gets underway. Strong results from 3M and GM. Today’s risk-on feel led by technology and AI stocks. The bounce broke above the 7500 level, a positive technical move. The next key resistance sits at 7600, while profit taking would bring the 7450-7500 into focus.
GOLD
The metal had a strong day, notwithstanding the USD remaining firm. Contributors appear somewhat contradictory with middle east geopolitical tension promoting gold’s safe-haven appeal, while optimism over a possible US/Iran deal boosted overall commodity complex. Technically buying continued once the short term downtrend was broken to the upside. It is unusual to see the USD, stock markets and gold all rise on the same day. Next upside target sits at testing the $4100 level.
BRENT OIL
Oil had a very strong day, reaching it’s highest level in 5 weeks. The rally continues to be driven by concerns over global supply disruptions resulting from the fresh round of escalating conflict in the middle east. The forward looking market is acting on potential Houti threats in the Red sea, Saudi tankers changing course and renewed uncertainty. Buyers looking above $90 with the $100 mark again in view.
BITCOIN
The cryptocurrency continued its bullish run, extending the uptrend with sellers remaining on the sidelines. The move was in-line with today’s risk-on appetite as investors returned to technology and growth assets. Note the continuing institutional demand with spot Bitcoin ETFs recording 5 consecutive days on net inflows. Buyers will now face the $67K-$68K resistance, last tested June 15th (unsuccessfully).
