This Friday opened on a quiet note. Indeed, the economic calendar is empty today. No news has been released. However, the situation has just changed. What has actually happened? Watch this video till the end!
On Thursday, the S&P 500 gained 0.3% and closed almost at the highest level of the year. Today the index carried on with its growth, trading now at near 4,704. The expected corridor for today is between 4,700 and 4,710. Soaring inflation is putting investors on edge. Amid expansion in retail sales and a consumption boom, the stocks of Alibaba, one of the largest retailers, tumbled 8%. This happened in response to the report showing that its quarterly earnings dropped unexpectedly 30%. Alibaba reckons that poor financial results come as a result of high inflation.
Besides, rampant inflation halted a rally of the US dollar. Indeed, the market is aware that the US Fed downplays the gravity of consumer inflation at elevated levels. Experts think that the greenback began a downward correction yesterday for this reason. On Friday, the US dollar index extended its slide to 95.60 and edged up to 95.90 later on. This dynamic matches our expectations. Meanwhile, the index is trading in a corridor between 95.5 and 96 points that will go on until next week.
As the US dollar is taking a pause, the USD/CAD pair is currently consolidating. Oil prices are trading lower, trying to reverse upwards. The USD/CAD pair grew to 1.2630. Today the currency pair is likely to hold in the corridor between 1.2600 and 1.2640. Apparently, the pair will make a local correction in a few hours and the price will hover at around this level until next week.
The most interesting market news today is that Bitcoin sank to 56,000 dollars. A lot of crypto traders doubted that the price would fall so sharp. Yesterday, we told you that 56 – 57,000 dollars was seen as a support level and in case of a decline, the price would correct upwards from these levels. This is what is going on now. Bitcoin rebounded to 57,800 dollars. Is the market resilient enough to recover in full? The flagship cryptocurrency is losing ground in light of the news from China. Beijing introduces new measures amid a crackdown on the crypto industry. In 2021, the government banned all kinds of crypto transactions and mining. In November, the government warned public firms against mining. So, it makes sense to consider just a technical picture. Bitcoin could rebound to 58,000 and again shed another 2-3,000 dollars. This will not happen unless the price settles above 58,000 and consolidates at such levels.
That’s all I wanted to tell you in the evening video. Experts predict that the US stock market might be able to print new annual highs closing today. Have a nice weekend! See you next week!
00:00 Situation on the US market
00:20 S & P500
01:15 DXY
02:01 USD / CAD
02:35 Bitcoin
04:04 Results

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