USD/MXN
The US dollar has plunged against the Mexican peso for the week, testing the lows that we’ve been bouncing along all year.
This is right around the 17.15 level, and it seems as if there’s a massive support barrier between there and 17.00. As long as we can stay above there, we are still technically in a range, but this last week has been particularly tough on the US dollar against certain currencies, and the Mexican peso, being a higher yielder, makes sense that it has taken advantage of this.
Gold
The gold market broke out during the course of the week as we continue to see a lot of questions asked about the Federal Reserve.
With a huge miss in the jobs market this week, we could see continued upward pressure in the gold market, but either way, it looks like the buyers are back and willing to get involved on dips.
Dow Jones 30
The Dow Jones 30 has found itself strong during the week, breaking above the 54,000 level at one point. We are giving back a bit on Friday, but this is a market that has broken through a significant barrier, and that in and of itself is a good sign.
The market’s been in an uptrend for quite some time now and shorting it certainly seems to be a reckless operation. The candlestick itself is rather impressive as we really got stretched during the early part of the week. The latter part of the week, though, was a little choppy.
Nasdaq 100
The Nasdaq 100 has touched the 30,000 level during the week but pulled back just a touch. Ultimately, though, it looks as if there’s a significant amount of resistance between 30,000 and 30,500, so I’ll be watching that. If we can clear that area, it’s a good sign for the Nasdaq 100 and the likelihood of it continuing to go higher.
Rates are starting to pull back a bit, but they’re still pretty elevated, and, of course, you will have to worry about rates being influenced by the situation in the Middle East. It’s not just an economic announcement question here; it is external noise that can cause some issues as well.
Crude Oil
Speaking of external noise and issues, the crude oil market has been somewhat negative during the week, but we have bounced from the 200-week EMA to show signs of life.
This is basically in reaction to the noise coming out of the Middle East and the seemingly never-ending hope that good news will come out of the negotiations between the Americans and the Iranians. I myself am not as impressed by what’s gone on, but at this point, it certainly looks as if we are on a knife’s edge waiting for the next shoe to drop.
USD/JPY
The US dollar fell against the Japanese yen to kick off the Monday session, but it seemed as after the central bank got involved and intervened, we’ve seen nothing but a bounce from there.
We are sitting right at the 50-week EMA, which is a good sign for support, and the fact that the 155 yen level held is also a good sign. We’ll have to wait and see whether or not the carry trade can continue, but when looked at through the prism of the longer-term trend, it’s but a blip on the radar.
German DAX
The German DAX is healthy and at all-time highs as we continue to see the German stock market outperform.
Quite frankly, stock markets around the world are looking for lower rates, but Germany has the added bonus of a government that looks to spend money. With infrastructure spending coming in strong, it makes sense that perhaps the DAX fares well.
EUR/USD
The euro has been surprisingly quiet this week, hanging around the 1.1550 level as we are trying to determine which problem to follow.
Will it be lower rates in America, which could, at least in theory, have the US dollar shrinking, or is it going to be a scenario where traders are looking at the fact that Europe may be short of energy this winter, which is a massive problem? I think this continues to be a very choppy market.
