Sterling rebounds strongly on QE speculation. Oil hits yearly highs on low inventories.
US stocks continued their rally yesterday as the Dow Jones reversed earlier losses and managed to close higher once again. The benchmark is not holding at 10062, after hit the 10,000 mark for the first time this year 2 days ago. Major currencies such as the EURO & STERLING, currencies also gained against the US Dollar as a result with the Sterling hitting the 1.6400 level. The Pound was also helped by comments from Bank of England member Fisher who said that there are now clearer signs that quantitative easing is working. This raised speculation that the Bank of England will stop the floating Pounds in the economy. OIL rose to its highest since a year at 78 usd a barrel as GAS inventories showed an unexpected decline. Many dealers are speculating that demand will increase as the economy is showing signs of recovery. GOLD is easing off and is trading at 1047$ an ounce.
Asian Stocks turned mostly negative as investors expect mediocre earnings from Japanese Telecom Companies.
Currency to watch out for: EURUSD & GBPUSD
- The EURUSD pivot point is at 1.4875 with a preference to enter into long positions at 1.4885
- The GBPUSD pivot point is at 1.6250 with a preference to enter into short positions at 1.6260
Today's calendar and market movers:
- US industrial output is expected to decrease to 0.2%
- US Michigan Sentiment is expected to stay stable at 73.5
DOW Industrial average closed at 10062 points almost 0.5% up. Hang Seng was up 0.12% and Nikkei was up -0.08% this morning.