HIGH IMPACT NEWS RELEASES:
Far East: AU- Retail Sales
Europe: No Major Data
North America: US- Wholesale Sales, Discount Rate Minutes, API Crude
- U.S. stocks retreated Monday as the Dow Jones Industrial Average pulled back further from the psychologically significant 20,000 milestone, although the Nasdaq bucked the weak trend to finish at an all-time closing high for a second session in a row.
- The charts compare five currently over-owned stocks in five sectors of the S&P 500 Index SPX, -0.35% The first is a daily chart of the period since Donald Trump’s election. The second is a monthly chart since the start of the current bull market.
- The dollar’s epic postelection rally appears to have stalled — for now, at least.In the week ended last Tuesday, speculators increased their long-dollar bets only marginally. On Friday, the U.S. currency notched its third straight weekly drop against the euro, its longest stretch of declines since the election.
- European stocks lost altitude Monday, with Lufthansa, Fresenius and William Hill among the biggest losers after they gave discouraging updates on their businesses.
- The Stoxx Europe 600 SXXP, -0.49% dropped 0.5% to finish at 363.67.
- The euro EURUSD, +0.2365% rose 0.4% to $1.0565.
- U.K. stocks closed higher Monday, boosted by the pound’s drop following comments from Prime Minister Theresa May that were viewed as signaling a “hard Brexit.”
- The FTSE 100 UKX, +0.38% rose 0.4% to end at 7,237.77, handing the benchmark its 10th winning session in a row and another record close. The gauge scored its eighth straight all-time closing high, the longest such streak since 1997.
- K. equities got a lift from the pound GBPUSD, +0.0082% falling to $1.2162, from $1.2270 late Friday, after May said she was confident the country could get good deals on both trade and immigration, but added that it couldn’t just keep “bits of EU membership.” A weaker pound helps lift FTSE 100 companies as it tends to aid multinationals that generate the bulk of their revenue outside of Britain.
- Some emerging markets showed declines, with indexes in Indonesia and Malaysia down less 0.6% and 0.3%, respectively, amid a continued rebound for the dollar USDJPY, +0.01% versus the yen — which briefly topped ¥117.50 in afternoon action. That could weigh on Japan stocks when they resume trading Tuesday after a national holiday on Monday, if the rebounding greenback maintains its gains in U.S. activity.
- Gold prices ended the U.S. day session with good gains Monday, with Comex futures closing at a four-week high close. A weaker U.S. dollar index on this day helped out the precious metals markets bulls. Also, reports said investor monies are again starting to flow into gold exchange traded funds (ETFs) as the year 2017 is just under way. February Comex gold was last up $10.30 an ounce at $1,183.70. March Comex silver was last up $0.171 at $16.69 an ounce.
EURUSD: The most likely scenario for the pair is going up to the nearest target of 1.0599.
EURJPY: The most likely scenario for the pair is going up to the nearest target of 123.47.
GBPUSD: The most likely scenario for the pair is going down to the nearest target of 1.2099.
GBPJPY: The most likely scenario for the pair is going up to the nearest target of 142.99.
USDJPY: The most likely scenario for the pair is going down to the nearest target of 115.49.
XAUUSD: The most likely scenario for the pair is going up to the nearest target of 1,182.3.