Sterling Gains in Weak Markets, Stocks To Sustain Historic Highs

Sterling Gains in Weak Markets, Stocks To Sustain Historic Highs

Sterling is growing today along with commodity currencies. Trade was rather low, with most markets closed. US futures are pointing to a sharp increase in the opening, with the DOW likely to take advantage of sentiment to extend recent record highs. The euro and dollar are currently the weakest, followed by the yen and the Swiss franc.

Sterling jumped sharply today in quiet holiday trading, especially against other European currencies. GBP/CHF resumes its recent uptrend, breaking through last week’s high of 1.3059. The rise from 1.1683 is seen as the third of the entire uptrend from 1.1102.

The next target is 1.3310 medium-term resistance, followed by a 161.8% forecast from 1.1102 to 1.2259 from 1.1683 to 1.3555. Break of minor support at 1.2998 will bring some consolidation at first. But the outlook will remain upbeat as long as the 1.2769 support remains. EUR/GBP is also accelerating down to 0.8470. The current fall from 0.9291 is seen as the third of the pattern from 0.9499.
Stocks To Sustain Historic Highs Assisted by US Data Releases
All major US stock exchanges have shown significant gains: the S&P 500 rose to record highs in the 4070s, rising almost 1.5% in the session, the Dow climbed 1.1% to close above 33.5 thousand, and the Nasdaq 100 rallied 2.0% to rise above 13.5k (just over 2.0% from record intraday highs). Small caps did not perform as well, but Russell 2K gained 0.5%. The CBOE Volatility Index rose a modest 0.58 to close just below 18.00.

As for the GICS sectors, with the exception of the S&P 500 Energy (-2.4%), which faced a sharp sell-off in crude oil markets (WTI -4.3%), the growth was significant; The consumer goods sector was one of the top-performing sectors, adding 2.3% on the back of Tesla’s shares surging more than 4.4% after the company reported record sales.

The telecoms sector also grew 2.3% on the back of a 4.2% rise in Google shares and a 3.4% rise in Facebook. Information technology grew by 2.0% and in consumer goods, industry, materials, and utilities by more than 1.0%.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.