The S&P(S&P 500) ignoring the crisis
The S&P(S&P 500) pushed to another fresh high as tech stocks continue to propel the market. It appears that investors have brushed aside lingering geopolitical concerns and pinned their hopes on the Fed resuming rate cuts for the year. If the economy avoids a recession, it should mean business as usual for the central bank, as this news would boost the US indices. 6,300 is the next target to the upside, with 6,000 being the closest support.
EURUSD remains bullish
The dollar’s bearish progression continues after the Middle East crisis brought scattered, short-lived support. This has captured much of the market’s attention, as the euro has taken full advantage. With an early Non-Farm Payroll report this week due to the 4th of July weekend, we may have a clearer idea of the direction the pair will take next. 1.1800 is the top, and 1.1580 is a fresh support level.
USDCHF capitalises on the greenback’s weakness
The Franc is another currency outperforming the dollar, as prices have fallen by over 400 pips in the past few weeks. The recent crisis underscored the fragility of the dollar, as a spike in geopolitical risk should have sent the dollar soaring, but any type of support was instead small in size and duration. Traders will now turn their attention to see if the psychological floor of 0.8000 can be broken, or if the pair can reestablish itself above the previous swing high at 0.8200.
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