Nasdaq Comp Breaks 16,000

“The stock market is filled with individuals who know the price of everything, but the value of nothing.” – Phillip Fisher

 

 

HEADLINES

 

 

• Dollar shines, euro suffers as COVID fears flare over Europe
• Gold steadies after hitting 2-week low as dollar retreats
• Oil hits 7-week lows on supply release expectations, Europe Covid surge
• Nasdaq ends atop 16,000 mark for the first time on tech strength
• Asia shares left listless by mixed China data
• EUR/CHF: SNB could be forced to act

 

 

FOREX

 

 

Dollar shines, euro suffers as COVID fears flare over Europe

 

The safe-haven U.S. dollar traded close to a 16-month high to the euro on Monday on growing anxiety over the impact of surging COVID-19 infections in Europe, with Austria reimposing a full lockdown and Germany considering following suit.

The greenback was near its strongest since early October against the riskier Australian and Canadian dollars, with the commodity-linked currencies also pressured by a slump in crude oil.

 

 

COMMODITIES

 

 

Gold steadies after hitting 2-week low as dollar retreats

 

Gold prices stabilised on Monday after hitting their lowest in nearly two weeks, as a retreating dollar lent some support to the metal. Federal Reserve policymakers are publicly debating whether to taper asset purchases more quickly with one of the central bank's most influential officials signalling on Friday that the idea will be on the table at the Fed's next meeting.

 

Oil hits 7-week lows on supply release expectations, Europe Covid surge

 

Crude oil fell to seven-week lows on Monday, extending declines after the previous session's slide, on concerns about excess supply after Japan said it was weighing releasing oil reserves and over demand from a worsening COVID-19 situation in Europe. WTI and Brent prices hit their lowest since Oct. 1 earlier in the session. They slumped around 3% on Friday.

 

 

STOCKS

 

 

Nasdaq ends atop 16,000 mark for the first time on tech strength

 

The Nasdaq Composite Index closed above 16,000 points for the first time on Friday, in its second-straight record finish powered by technology stocks, while pandemic jitters sent the Dow to its fourth losing session in the last five. Falling yields and safe-haven demand supported major technology stocks, which in turn lifted the Nasdaq (.IXIC).

FAANG stocks, which have largely persevered through economic shocks since 2020, traded broadly higher. Netflix Inc gained along with other stay-at-home stocks.

 

Asia shares left listless by mixed China data

 

Asian share markets turned mixed on Monday as data on Chinese retail sales missed expectations though industrial output stayed solid, while more evidence of global inflation pressures helped gold to a three-month peak.

 

 

ANALYSIS

 

 

EUR/CHF: SNB could be forced to act

 

“The Swiss franc has continued to perform well and is in focus today after EUR/CHF broke notably below the 1.0500 level for the first time since July 2015 – not even through the worst point of turmoil last year did EUR/CHF break the 1.0500 level.”

“While global inflation may ease SNB concerns and offer the prospect of a less active fight against CHF appreciation, we suspect at some point the markets may force the hand of the SNB to intervene and limit CHF strength from a move beyond parity.”

 

 

CHART

 

 

British pound / US dollar – 4-Hour Candlesticks

Source: GKFX Prime Metatrader 4

GBP/USD is again testing major support from former resistance at 1.34. A break lower would suggest a deeper decline towards 1.27. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/eur-chf-snb-could-be-forced-to-act-even-under-the-eye-of-the-us-mufg-202111191708
https://www.reuters.com/markets/us/dollar-shines-euro-suffers-covid-fears-flare-over-europe-2021-11-22/
https://www.reuters.com/markets/europe/nasdaq-ends-atop-16000-mark-first-time-tech-strength-2021-11-19/
https://www.reuters.com/world/china/global-markets-wrapup-2-pix-2021-05-17/
https://www.investing.com/news/commodities-news/oil-slumps-on-prospects-of-emergency-supply-releases-europe-covid19-surge-2686321