Dollar strength, BoE's hawkish hold, and US stock declines. Our technical analysis covers FX pairs, US indices, and the impact of "triple-witching" options expiration, providing insights for traders navigating market volatility.
US stock indices staged a retreat while US dollar rebounded
The US dollar has rebounded against other major currencies and outperformed the most against the higher beta Aussie dollar with a rolling 5-day positive return of 0.60% at this time of the writing.
The Sterling declined against the US dollar yesterday with a daily loss of 0.30% despite a hawkish hold by the Bank of England (BoE) to leave its policy interest rate unchanged at 4.5% as short-term technical factors overshadowed fundamentals.
All the four major US stock indices; S&P 500, Nasdaq 100, and Dow Jones Industrial Average staged a retreat yesterday as trade war fears took centre stage over the prior day’s Fed-fuelled rally
Today’s key event will be “triple-witching” US options expiration, where about US$4.5 trillion of options contracts tied to stocks, indices, and exchange-traded funds mature that may see two-way heightened volatility in the major US stock indices.
The latest intraday technical analysis on US Wall Street 30, US Nas 100, Hong Kong 33, Japan 225, Germany 30, EUR/USD, GBP/USD, AUD/USD, USD/JPY, Gold (XAU/USD), and West Texas Oil can be found in our YouTube video above.
