Image from shutterstock

By Margaret yang, CMC Market
FX – The dollar index surged to a 6-month high at the 94.56 area and continued to strengthen in Asian hours this morning. Last Friday’s US retail sales data and consumer sentiment beat market expectation. USD/JPY remained around 108.80. Immediate support and resistance levels for USD/JPY are at 107.00 and 110.00 respectively. USD/SGD is traded at around 1.3720 this morning, staying at a two-month high. EUR/USD retraced to the 1.1300 area as a result of the strengthening dollar.  GBP/USD slipped to the 1.4350 area, reaching a 3-week low.
Commodities – The crude oil price was little changed last Friday. Oil rallied 4% last week to a 6-month high, mainly due to a favourable US DoE oil inventory report and the Nigerian oil production disruption. WTI crude oil is trading at $46.90 this morning, up from $46.35 last Friday. Oil prices have surged over 70% since late January this year. Traders should remain cautious on possible profit taking activities as the price is hitting 6-months high, and continue to keep an eye on any oil production related news. A stronger dollar will put pressure on commodities, especially gold and oil.
The price of gold is little changed at $1,273 this morning. The near-term resistance remains at $1,286, which is also the 61.8% Fibonacci level. A key support level can be found near to its 50-SMA, which is currently pointing toward the $1,250 area. Silver is trading around $17.06 this morning. The near-term support and resistance levels are $16.75 and $17.66 respectively.
Equities – Asian markets have experienced significant selling pressure in early May. The Hang Seng Index has dropped more than 5% since end Apr. Singapore market has lost 8% since its April high. Disappointing earnings and lower than expected HK GDP data are probably the fundamental reasons behind the sell down.
The US market closed down 1% on Friday, despite better-than-expected retail sales and consumer sentiment surveys. The S&P 500 Index has formed a likely head-and-shoulder pattern, which is usually a bearish signal.
US SPX 500 – Cash
market_16052016
Key technical levels to watch:

  • Head and shoulder pattern
  • Immediate support levels: 2,036
  • Immediate resistance level: 2,082, followed by 2,132

Margaret Yang Yan, CFA, is a market analyst for CMC Markets Singapore.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
You May Also Like

StanChart’s shareholders revolt against CEO’s high pension but Temasek is ok with it

The UK Financial Times reported yesterday (21 Mar) that Standard Chartered is…

US nonfarm payrolls beat expectation, Moody's lowers Singapore banks' outlook

By Margaret Yang March US nonfarm payrolls increased by 215k, beating market…

JPY plunges as BOJ plans to launch negative rates on loans

By Margaret Yang, CMC Markets More USD/JPY volatility is ahead of us.…

It is an “alarmingly low percentage” as only 44 per cent of senior roles in financial services sectors are Singaporeans, says netizens

Based on Monetary Authority of Singapore (MAS)’s estimates, 44 per cent of…