US stocks continued their bullish momentum overnight after the strong US producer price index (PPI) data. The numbers showed that the American producer price index rose from 7.3% in June to 7.8% in July as companies continued facing higher costs. Core PPI rose from 5.6% to 6.2% in July. Meanwhile, the number of Americans filing for initial jobless claims declined from 387k to 375k while the continuing claims declined to more than 2.66 million. These numbers provide more evidence that the economy is doing well.
The US dollar also rose slightly after the PPI and jobless claims numbers. Meanwhile, data by the National Association of Realtors showed that home prices in the US rose in the second quarter as demand resumed. In most metro areas, median prices rose by more than 10% while single-family existing homes jumped by 22.9% to $357k. This trend has been helped by low interest rates and savings generated as more people stayed at home. Inventory for homes declined as potential sellers delayed their plans to move.
The economic calendar will have no major events today. In Switzerland, the statistics agency will publish the latest producer price index (PPI) data while in Germany, the agency will release the wholesale price index. The Swedish statistics agency will release the latest inflation data. While these numbers are important, they will likely lead to minimal volatility. Meanwhile, stock traders will react to earnings from companies like Rocket Companies, 23andMe, and Ubiquiti.
SP500
The S&P 500 index maintained the bullish momentum in the overnight session as interest in American stocks rose. The index rose to a high of $4,458, which was a new all-time high. As a result, the index has moved above the important resistance at $4,392. It has also risen above the 25-day and 50-day moving averages. The Relative Strength Index (RSI) has moved close to the overbought level. Therefore, the index will likely keep rising, with the next key target being at $4,500.
EURUSD
The EURUSD pair was little changed in the overnight session. On the four-hour chart, the pair is slightly below the key support level at 1.1750. It has also moved below the 25-day and 15-day moving averages while the MACD and Relative Strength Index (RSI) have tilted lower. With no major economic data expected, the pair will likely remain in the current range.
BTCUSD
The BTCUSD price retreated to a low of 43,821 in the overnight session and then rebounded to the current level of 45,266. On the four-hour chart, the pair is slightly below this week’s high of 46,787. It has also moved above the 25-day and 50-day moving average and the support at 41,412. The pair will likely keep rising during the weekend as investors target the next key resistance at 50,000.
