A quiet week in the market is dominated so far by a powerful rise in the price of cocoa futures to new long-term highs.
- US stock markets rose firmly yesterday, reaching new record highs. The major equity indices the S&P 500 and the NASDAQ 100 made new all-time highs, although the Dow Jones 30 did not. Short term price action looks very bullish, so trend traders will want to be involved on the long side, and day traders may consider trading these indices long if they show momentum after the market opens. The S&P 500 briefly touched 5000 yesterday, which may act now as a resistance level as a huge round number.
- Cocoa futures have risen very strongly over recent days, rising very strongly to again reach a new multi-year high price yesterday, which will keep trend traders interested in this commodity on the long side. It has been exhibiting a powerful bullish trend for well over one year. Cocoa futures are up by more than 25% since the start of 2024.
- In the Forex market, the Swiss has been the strongest major currency since the Tokyo open today. The Japanese Yen has been the weakest. The greatest volatility recently has been seen in the USD/JPY currency pair, and in Yen crosses.
- Four US Federal Reserve officials said yesterday they do not see an urgent case for cutting interest rates: Kugler, Kashkari, Collins, and Barkin. Markets are not expecting any US rate cut before May at the earliest.
- The Bank of Japan’s Uchida said its hard to see that there will be strong rate hikes after negative rates are finally ended by the first forthcoming rate hike. Money is flowing into Yen deposits on expectations that positive rates will be introduced soon.
- The EUR/USD currency pair may have made a double bottom at $1.0725.
- Today will see the release of US Unemployment Claims data.
