Summary:
- The US dollar drops again on the day at the end of a bad week for the buck
- Oil.WTI rises to highest level since June 2015. OPEC next week
- All-time highs seen in the US500
- Ethereum extends breakout rally to fresh record peak
- Germany could be moving towards a grand coalition
It’s been a bad week for USD bulls with the world’s reserve currency sliding across the board. In fact the only currency that has fared worse since Monday is the Turkish Lira which continues to suffer from president Erdogan’s unorthodox comments surrounding monetary policy. Looking ahead it is clear that the US dollar may require a hand to rise and next week could well provide such a boost with Trump’s tax plan nearing a key point.
One beneficiary of the USD depreciation is Gold, with the precious metal recovering after some weakness seen at the start of the week. The market remains at an interesting technical level and a comprehensive technical overview can be found here.
Another market to benefit from a fall in the buck is Oil.WTI. The price of crude has reached its highest level since the early summer of 2015 today and with OPEC expected to announce a further extension to their supply cuts at their annual meeting next week there could be more upside ahead for Oil.
The US stock market rally shows little sign of abating with the US500 rising above 2600 this morning to post a new all-time high. After 2 weeks of lower closes the US500 is looking to post an impressive gain this time out and extend the rally after a bit of a pause. The market is currently trading close to its weekly high and after a dip lower at the beginning of the week the bulls have firmly taken back control of the tape.
Another week on cryptocurrencies is coming to an end and we may conclude that buyers of Dash and Ethereum could be the most satisfied as both virtual currencies have made remarkable increases so far. Dash has pared its gains a little today but Ethereum is going from strength to strength and has risen another 6% on the day to move above 450 and post fresh all-time high.
One of the most interesting news from this morning came from Germany saying that President Steinmeier called for a joint meeting with Chancellor Merkel and SPD’s Schulz next week. It could mean that the SPD steps down and it’s preparing for a continuation of the grand coalition. The DE30 is a little higher on the daily and barring a late decline has managed to snap a two week losing streak.