S&P 500 futures modestly higher ahead of data, dollar weakens

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  • Equity markets remain in the zone of recent maximums.
  • Wall Street futures in positive territory ahead of important data and more results.
  • The dollar weakens again, DXY approaches the recent bottom.

Equity markets are hovering around multi-day highs, showing no further gains but limited declines. The dollar is close to recent lows and metals to highs. Important data is coming from the US.

Rally paused, limited correction

In Asia, markets closed broadly higher after the Bank of Japan did nothing. The Nikkei 225 gained 2.50%. In Europe, the FTSE 100 is unchanged, the DAX is up 0.15% and the CAC 40 is down 0.28%. The S&P 500 lost 0.20% on Tuesday and rose 0.22% in Wednesday’s preview. Dow Jones futures advance 0.10% and Nasdaq 0.25%.

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In the premarket, IBM falls 1.85%, Morgan Stanley 0.63% (yesterday it rose 5.90%) and Visa 0.22%. Tesla rises 3.65% and American Express 0.75%. Microsoft rises 0.10% in the preview, after learning that it plans to cut jobs among engineers. Among the companies due to present results on Wednesday are Charles Schwab, PNC, Prologis and Alcoa.

The dollar it’s falling on Wednesday and nearing the multi-month lows it hit earlier this week. The DXY is trading around 102.00, down 0.35%. Among the factors of weakness is the decline in Treasury bond yields. The 10-year bond yields 3.48%, far from the 3.58% peak on Tuesday; while the 2-year tranche is at 4.18%.

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Several US economic reports will be published on Wednesday, which may be key for the stock markets and the dollar. In a first turn the Producer Price Index (IPP) and retail sales for December. It is expected that the PPI will show a decrease of 0.1% in December and that the annual rate will go from 7.4% in November to 6.8%. While the consensus is for a 0.8% drop in retail sales. Then it will be the turn of the industrial production report, which is expected to present a drop of 0.1% in December. In addition, they will expose several officials of the Federal Reserve. In the American afternoon the Beige Book of the central bank will be published.

Emerging market currencies remain positive against the dollar, helped by a better mood and low yields. Treasury bond. In this group, the Mexican peso leads at this time, which climbed to new highs since February 2020 against the dollar, with the extra boost of the rate differential between Mexico and the US.

The euro continues to be among the weakest currencies, with significant falls on all fronts. Speculations that the European Central Bank will soften the rise in interest rates after the February meeting is weighing on the euro. Today there will be public statements from more ECB officials, which may reinforce those expectations or weaken them. EUR/GBP went from testing 0.8900 to 0.8736 in just over 24 hours.

In it United Kingdom it was known that he Consumer’s price index rose 10.5% (annual) in December in line with expectations and the core remained at 6.3%. In the Eurozone, the final CPI reading confirmed a decline to 9.2% in December.

The bank of japan it kept its monetary policy unchanged and the yield control curve levels unchanged. Speculation had arisen about a possible change that did not materialize. This caused the yen to react with a big drop in the market in the Asian session. With the passing of the hours, the Japanese currency was recovering part of the lost ground. The USD/JPY went from 128.60 to 131.50, and in the previous American session it operates in the 129.00 area. Volatility in yen crosses remains high.

The metals They are resuming the increases after the two-day correction, supported by the weakness of the dollar and the rise in bonds. The Prayed it is at $1916 and silver at $24.20. Cryptocurrencies remain firm in the area of ​​maximums since the beginning of November, validating the recent recovery. Bitcoin it is around $21,250 and Ethereum at $1,575.

The prices of Petroleum They marked new highs in weeks. The WTI barrel climbs 1.75% and stands at $81.50. The International Energy Agency said that demand for oil will reach a record this year after the reopening of China.

technical levels


Last Price Today 3998.35
Today’s Daily Change 8.66
Today’s Daily Change % 0.22
Today’s Daily Open 3989.69
20 Daily SMA 3882.9
SMA of 50 Daily 3929.95
SMA of 100 Daily 3862.79
SMA of 200 Daily 3953.88
Previous Daily High 4014.11
Minimum Previous Daily 3980.15
Previous Weekly High 4003.12
Previous Weekly Minimum 3869.65
Maximum Prior Monthly 4116.92
Minimum Prior Monthly 3761.43
Daily Fibonacci 38.2% 4001.14
Daily Fibonacci 61.8% 3993.12
Daily Pivot Point S1 3975.19
Daily Pivot Point S2 3960.69
Daily Pivot Point S3 3941.23
Daily Pivot Point R1 4009.15
Daily Pivot Point R2 4028.61
Daily Pivot Point R3 4043.11

Source: Fx Street

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