U.S. Stocks Mixed, USD Struggling To Find Solid Ground
Shain Vernier • 1 min read
U.S. stocks are conflicted as civil unrest continues to dominate the news cycle. Just over the halfway point of the trading day, the DJIA DOW (+140), S&P 500 SPX (+9), and NASDAQ (-17) are mixed. At least for the moment, it appears that traders are treading lightly to open June.
As it has for the past several days, riots in major American cities have overshadowed the COVID-19 pandemic. In a press conference late Monday, President Donald Trump suggested that the U.S. military would be deployed to restore order in areas hard hit by looting and unrest. While the policy isn’t without precedent, it’s a bold move and one that will be scrutinized for weeks to come.
On the economic news front, there is some rare good news out this morning. The ISM-NY Business Conditions Index (May) came in at 19.5, well above April’s figure of 4.3. Although this metric is not a primary market driver, it does suggest that business is coming back after the extended COVID-19 shutdown.
All in all, U.S. stocks have performed extremely well over the past six weeks. However, while equities are up, the USD is down. The Greenback is flailing vs most of the majors, specifically against the euro.
U.S. Stocks Rally, EUR/USD Gains Ground
Late-May and early-June have been great times for EUR/USD bulls. Rates are driving higher and in position to crack the 1.1200 handle.
Overview: Right now, the key number to watch for the EUR/USD is the 62% Current Wave Retracement at 1.1166. Bullish pressure has this area under fire; if it gives way, rates are likely to run to 1.1250 in short order.