NASDAQ down -0.87%
The final numbers are showing:
Below are the percentage changes and ranges of the major indices. European shares also ended lower with the Spain Ibex leading the way at -1.69%. The German DAX fell -1.44%.
Strong dollar, weak gold
Gold initially rose on Biden's stimulus plan but there's been a sharp turnaround on the 'sell the fact' trade across everything.
The US dollar is strong across the board and that's putting pressure on gold.
GBPUSD price still below 200 hour moving average
The GBPUSD has been trending to the downside and in the early New York session tested the cluster of support defined by the 100 hour moving average (blue line), the 38.2% retracement and the 200 hour moving average (green line).
S&P index falls below its 100 hour moving average
sell the fact
Technically looking at the S&P index on the hourly chart, the price has now fallen below its 50 and 100 hour MAs at 3771.07 and 3761.00. The 200 hour moving average is currently at 3723.91.
USDCAD running higher in trading today
The USDCAD is trending higher in trading today with little in the way of corrections a long way.
The pair has been stepping higher since the first few hours of trading. The low for the day came in at 1.26354. The high just reached 1.27566. The low to high trading range of about 121 pips is well above the 92 pip average over the last 22 trading days.
Sell the fact, after the Biden stimulus proposal
The US stocks are opening mixed despite good earnings from banks this morning. The retail sales disappointed in December and perhaps some "" after the Biden stimulus proposal.
Trades to the lowest level since December 11
Looking at the hourly chart, the fall today took the price back below swing lows from December 14, December 15 and December 16 between 1.2115 and 1.2124. It would take a move back above those levels now to give buyers some hope that the momentum to the downside today, may have gone too far (see yellow area in the chart above).
100 hour moving average, 38.2% retracement and 200 hour moving average all being tested
Sellers looking for more downside momentum would now view the 100 hour moving average as a risk level for the trade. Stay below keeps the bears in control. Close risk might be the 38.2% retracement at 1.36101.
The USD is stronger to start the session
As the North American session begins, the JPY is the strongest while the AUD is the weakest of the major currencies. The USD is trading higher after Powell reiterated that the Fed is not ready any time soon to change policy and Biden proposed a $1.9T stimulus package including upping the direct payment to qualified individuals to $2000, providing relief for state and local and funding for the covid relief measures. Today, there is a slew of economic data highlighted by PPI and Retail sales at 8:30 AM ET. Stocks are mixed and yields are lower.
Gold will continue to track real yields for the time being
Precious metals got a slight boost from Fed chair Powell yesterday, after he said that the central bank is not looking to ease policy any time soon - not until troubling signs of inflation begin to surface at least, which is a long ways to go.
Has the Fed lost its power to surprise the market?
Despite Powell's remarks, Treasuries sold off initially in anticipation of Biden's proposal but has since eased as we get the new day going amid some concerns that there could be a couple of roadblocks in Congress to push all of the spending through.
The EURGBP has a key floor (old ceiling) at 0.8860 to 0.8878.
Buyers are leaning against the level. However, I would suspect that on a break, the buyers would quickly turn to sellers (and add some new shorts as well). Nevertheless, buying is a low risk trade for traders hoping that the pressure over the last 6 trading days (all are lower) will run out of steam. The price over moved from 0.9076 to the low today at 0.88685 over that period.
UK's FTSE 100 rise 0.8%
The provisional closes are showing:
A look at other markets as London/European traders look to exit shows
In the US stock market, the major indices are higher but off there high levels for the day:
Price has trading above and below the 100 hour MA over the last 2 trading days
The USDCHF is following the USD lower. For this pair, the price high today reached up to the low end of a swing area near recent highs between 0.89172 and 0.89197. The high price today reached 0.89167 and reversed lower. The last 4 hourly bars have seen declines.