Yesterday the US stock indices have recorded a new record high, investors seem, in fact, have put aside their worries about slowing global growth and the fallout from the Brexit.
Yesterday, Wall Street, the Dow Jones Industrial Average broke the previous record, dating back to May 19, 2015, reaching 18259.12 points, Los & P 500 showed, for the second day in a row, a new historical maximum of to 2155.40 points.
On the bond market, in the Asian session of the US bond yields I fell slightly, catching his breath after a five-day rally.
The bond yields to two years, sensitive to monetary policy, fell to 0.6752% from 0.69%; the yields on ten-year fell all’1,4875% after testing the 1.5288%; the rally in yields on government bonds should continue, because investors continue to prefer riskier assets in the wake of the improvement in risk appetite.
On the Forex market, the British Pound continued its rally, while Theresa May is about to take office as Prime Minister. The fact that he made it clear that the output will not be rushed dispelled the clouds in the short term, allowing the pound to make a rally for the fourth consecutive day, rising to $ 1.33, while on Friday it still hovered around 1, 29 USD.
However, the upside potential of the pound may be limited because the BoE on Thursday is expected to cut the benchmark interest rate.
In Tokyo, the pair GBP / USD has been moving in the range between 1.3225 and 1.3338, after being tripped in the area of 1.3350 (early July of the previous maximum resistance).
In Japan, the yen has stabilized after having completed a rally of around 4% in the last three days.
We expect the Japanese Yen to fall back because traders continue to buy back the short and investors adjust their positions ahead of the meeting of the BoJ in late July.
USD / JPY has given a marginal 0.50%, to 104.42 after touching 104.99 share on Wall Street.
The currencies linked to the first took a hit Wednesday, NZD, AUD, NOK and CAD materials fell sharply because of the Crude Oil prices fell further and traders have cashed in recent gains.
NZD / USD has sold about 1% compared to the maximum of Wall Street, down to 0.7250, the Australian dollar slipped 0.90%; the two currencies have not been able to break upwards their key strengths, while stabilized crude oil prices. The USD / CAD has risen slightly, to 1.3070, the USD / NOK has gained 0.40%.
Today traders will monitor the IPC in Spain, Italy and Russia; The Eurozone industrial production; MBA mortgage applications, the monthly statement on the budget, the Beige Book and crude oil inventories in the US; retail sales in South Africa; the decision on the interest rate in Canada.