Morning Preview: Stocks Soar While the Swissy Leads the Charge
Rowan Crosby • 1 min read
It was a relatively quiet day on forex markets after some big volatility early in the week, slowed down. The big story of the day was out of the US as the House of Representatives passed their version of the tax reform bill. That’s another step forward for tax reform in the US and the markets liked it. The S&P 500, in particular, push up nearly 1% higher.
Currency markets were a little more subdued, with the headline act, Eurozone inflation, coming in in line with expectations. That meant that markets didn’t have much to get excited about.
Yesterday I wrote about the Swissy getting set for a bounce. And right on queue, we had a nice rebound. At the close of US trade, the USD/CHF was up about 0.6% which was a nice profit for those that read my article.
The US Dollar Index was a little higher, however, it did tag the important 94.00 resistance level that I mentioned yesterday. We are now consolidating just below that area now and if we can get some momentum, we might be in for a test of overhead resistance on Friday.
US Dollar Index (DXY) – 240 min Chart.
Data to Watch
Although the calendar is a little thin we do have Building Permits, which could give the USD a lift. The CAD will be in focus today as we have Canadian CPI and as it happens we just closed a profitable long forex signal on the USD/CAD. This one will be in-play today so keep the forex signals page front and center on what is the headline data point for Friday.