Market Highlights
1 - US stock markets close mixed. S&P -0.28%, DJ +0.26%, NASDAQ -0.76%
2 - European indices also end day mixed. DAX -0.11%, FTSE +0.35%, IBEX +0.69%
3 - Gold gains $27 at $4651; Brent down $1.26 at $90.32; BTC up $1.2K at $79K
4 - USD up across the board. USDX +0.17%, EUR -0.15%, JPY +0.13%, CAD +0.40%
5 - Bessent says no one is outside US reach of sanctions on Iran, including China
Daily Price Activity
Insights
USD INDEX The USD was modestly higher today aided by support for safe-haven demand amidst new sanctions against Iran. At the same time concerns about US fiscal sustainability and Treasury debt continue to weigh on the global reserve currency- a bounce within a broad weak trend. Buyers will aim at 100.00 in order to complete a trend reversal. Support at 98.66 with resistance at 99.00.
S&P 500 A mixed day for the stock markets with the index trading cautiously, resulting in a modest pull back as opposed to a major sell-off. Technology and semiconductor stocks were the main drag, as well as the market looking anxious ahead of Nvidia earnings, Fed’s Jackson hole summit and PCE inflation numbers later this week. Note current support has held strong for the past 3 trading sessions. Resistance at 7707 with support at 7655.
GOLD The metal had a strong day, adding a 4th consecutive higher high and higher low on the chart, as the uptrend/bounce off the $4000 level continues. Several contributors included lower yields, continued safe-haven demand, plus strong technical momentum as prices broke above the May highs. The fact that gold rose in spite of the USDX’s late recovery confirms the underlying bullish demand. Resistance at $4684 with support at $4594.
BRENT OIL Brent sold off today, although price activity remains relatively contained, and close to the pivotal $90 mark. The catalyst was the new US sanctions on Iran, however instead of pushing prices higher on fears of a supply disruption, the forward looking market interpreted the announcement as less severe than anticipated reducing an immediate supply-risk premium. Also contributing: profit-taking following the recent rally from last week. Resistance at $92.03 with support at $90.08.
BITCOIN Another strong day for the cryptocurrency with a gain of almost $1500, the price touching $80K, an important psychological and technical level. The rally from last week continued with BTC now up over 20% over the past week. The move is interesting as gold is also strong while the USD struggles. Lower yields, renewed ETF inflows and short covering have all contributed. Resistance at $80K with support at $76.6K.
FX Pivot Levels
