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EUR/USD holds positive ground above 1.0700, eyes on German CPI data

EUR/USD holds positive ground above 1.0700, eyes on German CPI data

EUR/USD trades on a stronger note around 1.0710 during the early Monday. The weaker US Dollar below the 106.00 mark provides some support to the major pair. All eyes will be on the Federal Reserve monetary policy meeting on Wednesday, with no change in rate expected. 

EUR/USD News

USD/JPY extends recovery after testing 155.00 on likely Japanese intervention

USD/JPY extends recovery after testing 155.00 on likely Japanese intervention

USD/JPY is recovering ground after crashing to 155.00 on what seemed like a Japanese FX intervention. The Yen tumbled in early trades amid news that Japan's PM lost 3 key seats in the by-election. Holiday-thinned trading exaggerates the USD/JPY price action. 

USD/JPY News

Gold tests critical daily support line, will it defend?

Gold tests critical daily support line, will it defend?

Gold price is seeing a negative start to a new week on Monday, having booked a weekly loss. Gold price bears the brunt of resurgent US Dollar (USD) demand and a risk-on market mood amid Japanese holiday-thinned market conditions.

Gold News

XRP plunges to $0.50, wipes out recent gains as Ripple community debates ETHgate impact

XRP plunges to $0.50, wipes out recent gains as Ripple community debates ETHgate impact

Ripple loses all gains from the past seven days, trading at $0.50 early on Monday. XRP holders have their eyes peeled for the Securities and Exchange Commission filing of opposition brief to Ripple’s motion to strike expert testimony. 

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Week ahead: FOMC and jobs data in sight

Week ahead: FOMC and jobs data in sight

May kicks off with the Federal Open Market Committee meeting and will be one to watch, scheduled to make the airwaves on Wednesday. It’s pretty much a sealed deal for a no-change decision at this week’s meeting.

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S&P 500

The Standard & Poor's 500, abbreviated as the S&P 500, or just "the S&P” is a market value-weighted index of 500 large companies having common stock listed on the New York Stock Exchange (NYSE). It is seen as a leading indicator of U.S. equities and generally perceived as the most representative.

The S&P 500 stock market index, maintained by S&P Dow Jones Indices, comprises exactly 505 common stocks – including two share classes of stock from 5 of its component companies – issued by 500 large-cap companies and traded on American stock exchanges (including the 30 companies that compose the Dow Jones Industrial Average, DJIA) and covers about 80% of the American equity market by capitalization. The index is weighted by free-float market capitalization, so more valuable companies account for relatively more of the index. The index constituents and the constituent weights are updated regularly using rules published by S&P Dow Jones Indices.

The companies of the index are selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor's following selection criteria including market size, liquidity and industry grouping.

Over time, the S&P 500 can be used as a benchmark for the economy.


HISTORIC HIGHS AND LOWS FOR S&P 500

  • All-time records: Max: 3397 on 20/02/2020 - Min: 4.4 on 05/1932
  • Last 5 years: Max: 3397 on 20/02/2020 - Min: 1807 on 11/02/2016

* Data as of February 2020


ASSETS THAT INFLUENCE THE S&P 500 THE MOST

  • Currencies: USD.
  • Commodities: Oil and Gold.
  • Bonds: T-Bond (Treasury bond is a marketable, fixed-interest U.S. government debt security).

ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE THE S&P 500

Since the S&P 500 is a benchmark of American stocks, what will impact its value is related to all those decisions and figures that affect the results of big companies in the USA. That is, among others:

  • Economic indicators of inflation (CPI, PPI,...), consumer confidence (as Michigan Consumer Confidence Index), growth (GDP), employment (Non Farm Payrolls) and salaries (Average Hourly Wages)
  • interest rates decided by the Federal Reserve System, which is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises. Jerome Powell is the 16th Chair of the Federal Reserve, serving in that office since February 2018. He was nominated to the Fed Chair position by former President Donald Trump and confirmed by the United States Senate.
  • Fiscal policy, trade deals, business laws decided by the US administration (Joe Biden), but also by the US Treasury Department (Janet Yellen) and the US Department of Commerce (Wynn Coggins). The US Department of the Treasury's mission is to maintain a strong economy and create economic and job opportunities by promoting the conditions that enable economic growth and stability at home and abroad, strengthen national security by combating threats and protecting the integrity of the financial system, and manage the U.S. Government’s finances and resources effectively. The US Department of Commerce is an executive department of the federal government concerned with promoting economic growth. Among its tasks are gathering economic and demographic data for business and government decision-making, and helping to set industrial standards
  • Energy prices such as electricity, oil, etc...because they have impact on production costs for those companies that are part of the S&P500.