Nasdaq 100
Nasdaq 100 has been positive during the bulk of the week, as it looks like we are trying to do everything we can to turn things around from the recent noise and jump to the upside. Ultimately, this is a market that, given enough time, does look like it could continue to go much higher. But with very high interest rates, it makes a certain amount of sense that we hesitate a bit.
We have recently seen this market play out as one that is willing to push higher on every dip. Ultimately, this is a situation where the markets seem to continue to offer value that people will take advantage of. Despite the extraordinarily high interest rates, buyers continue to jump into this index.
EUR/USD
The euro has fallen during the week to reach down toward the 1.14 level. We have turned around late in the trading week, but we'll have to wait and see whether or not we can continue to see support.
If interest rates in America continue to climb, it does make a certain amount of sense that the euro will see a little bit of downward pressure.
Gold
The gold market has been negative during the week as rates continue to climb, and I do think that gold will continue to have plenty of issues. This is a short-term problem, though, and I do believe that, given enough time, traders will have to make a bit of a decision here.
But ultimately, I do like the idea of buying a dip eventually. From a longer-term standpoint, short-term, though, I anticipate a lot of noise.
Copper
The copper market continues to see a lot of volatility, and we did shoot straight up in the air at one point. But unfortunately, we don't have much in the way of follow-through.
The $7 level above is going to continue to be a problem, but the markets will continue to look at the lack of output from copper miners and the massive amount of demand that almost certainly will be a factor going forward, with the electrification of the economy and the AI data centers out there being big consumers of copper.
USD/CAD
The U.S. dollar has skyrocketed against the Canadian dollar during the bulk of the week and looks as if it is trying to get to the crucial 1.42 level.
That being said, this is a market that continues to watch the interest rate differential and the overall risk appetite out there, as the trade war continues to be a major problem between these two economies. The 1.42 level is an area where I would expect to see some trouble, though.
Silver
The silver market fell during the week but remains in its range, and it'll be interesting to see how this plays out as we continue to see a lot of questions asked of whether the electrification and AI trade continues to help silver.
Even though interest rates are extraordinarily high, it's a little bit of a push and a pull here. I expect choppiness. The $70 level above could end up being a significant barrier.
GBP/USD
The British pound has fallen against the U.S. dollar during the course of trading, testing a major support level right around the 1.3250 level. We have found buyers, though, and that's a good sign.
So at this point, it just looks like a market that is going to continue to see a bit of consolidation. At the bottom of the range, that's a strong sign that maybe we return back into that area. After all, both central banks have similar interest rates, so the differential is all but irrelevant.
USD/MXN
The U.S. dollar has shot higher against the Mexican peso as rates in America get out of control. This is going to directly influence this pair, as Mexico is so sensitive to the U.S. economy. And, of course, it makes the interest rate differential between these two economies shrink.
Nonetheless, I do think that, given enough time, there's probably some resistance. I'll watch the 18 pesos level because I think that could be an area where you might see a little bit of interest. Given enough time, I think the interest rate differential starts to come back into play because it is still a positive swap to short this pair. So I'm not looking to buy it either way.
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