Risk-On Sentiment Pushes US Stocks to New Highs, Safe-Haven Currencies Underperform
| Action Insight Weekly Report 5-18-24 |
| Risk-On Sentiment Pushes US Stocks to New Highs, Safe-Haven Currencies Underperform |
Risk-on sentiment dominated global financial markets last week, with investors buoyed by US inflation report that alleviated fears of another interest rate hike by Fed. The DOW defied gravity and surged to a new record high above the 40k mark, while S&P 500 and NASDAQ also set new records. Commodities mirrored this strong performance, with Copper hitting an all-time high and Gold poised to follow suit. In the currency markets, Swiss Franc ended as the worst performer, followed by Dollar and Japanese Yen, reflecting the typical underperformance of safe-haven assets when investors embrace risk. Conversely, high-beta currencies such as New Zealand Dollar, British Pound, and Australian Dollar were the best performers, benefiting from their risk-sensitive nature. Euro and Canadian Dollar positioned themselves in the middle of the performance spectrum... |
EUR/CHF Weekly Outlook EUR/CHF's rally from 0.9252 resumed by breaking through 0.9847 resistance last week. Initial bias stays on the upside this week for 61.8% projection of 0.9304 to 0.9847 from 0.9563 at 0.9899. Decisive break there could prompt upside acceleration to 100% projection at 1.0106, which is slightly above 1.0095 key structural resistance. On the downside, below 0.9835 resistance turned support will turn intraday bias neutral and bring consolidations first. But near term outlook will remain bullish as long as 0.9728 support holds, in case of retreat. | |
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