S&P500 Hit A New All-Time High As EUR/USD Prepares For A Breakout


Today it is all about the inflation data in the United States. It appears that the entire financial market is waiting for this data if we judge only by the extremely low volatility levels. 

As always, when volatility is depressed, stocks remain at elevated levels. The S&P500, for example, made a new all-time high yesterday, and the other stock market indices remain close to their highs as well.

In Europe, the frenzy of the stock market continues. The Spanish index trades above 8,500 points, the FTSE100 is close to 6,900, and the CAC40 sits comfortably above 6,100. The increase in vaccination efforts in the last days sent a wave of optimism in Europe, as the 70% herd immunity target by September is suddenly attainable.

The currency market is really slow this week. For example, the EURUSD pair had a range of only forty-eight pips, hovering around the 1.19 level. When the EURUSD isn’t moving, nothing is moving, so traders simply have to wait for the next thing that may spur some activity.

Daily Analysis

The market participants expect the inflation or CPI in the United States to show that the prices have increased in the last month by 0.1%. The risk here is that the data will overshoot, as fears of rampant inflation are mounting after the monetary and fiscal stimulus.

New Zealand dollar (NZD) traders will be very busy today as the Reserve Bank of New Zealand (RBNZ) delivers its rate statement and policy overview.

Markets to Watch

Silver, EURGBP, EURUSD – markets in focus today.


Silver has formed a possible double top close to the $30 level and now stays in a horizontal range that should determine the next movement. If the market breaks the horizontal support, then traders will push the price toward the double top’s measured move. If, on the other hand, the price action is strong enough to break above $30, the market participants will stay on the long side for a move equal to the rectangular formation.

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Disclaimer: None of the content in this article should be viewed as investment advice or a recommendation to buy or sell. Past performance/statistics may not necessarily reflect future ...

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