Mining Stocks Rally as Retail Traders Target Silver

Equities Rebound Boosted by Gains in Mining Shares

The US dollar traded higher against all the other G10 currencies on Monday and during the Asian session Tuesday. It gained the most versus SEK, CHF, CAD, and EUR, while it eked out the least gains against NOK and NZD.

S&P 500 — Technical Outlook

Yesterday, the S&P 500 finished its trading session below the short-term tentative downside resistance line take from the high of January 26th. However, this morning, the cash index broke above that line and now seems to be aiming for higher areas. That’s why we will take a slightly more positive approach, in regards to the near-term outlook.

EUR/AUD — Technical Outlook

From the second half of January, EUR/AUD has been successfully moving higher, while trading above a short-term tentative upside support line drawn from the low of January 21st. However, let’s not forget that at the same time, the pair is still trading below a medium-term downside resistance line taken from the high of October 20th. As long as the rate remains in between the two trendlines, we will stay on the neutral side.

As for the Rest of Today’s Events

During the European session, we get Eurozone’s 1st estimate of GDP for Q4, which is expected to have contracted 1.8% qoq, after rebounding 12.7% qoq in Q3. This is likely to raise concerns with regards to the bloc’s economic activity, especially taking into account the slowdown in the rolling of the coronavirus vaccinations, but we believe that EUR-traders are likely to treat this release as outdated, given that we already have data showing how the Euro-area economy has entered the new year, the likes of the PMIs. With the composite PMI staying in contractionary territory, the ECB is likely to remain ready to act again if the situation worsens, but with Lagarde saying that the downside risks are less pronounced, and with inflation expected to have rebounded in January, we don’t see the case for the ECB easing further its policy at its next policy meeting.



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