Trump Trade Resurgence Boosts Bitcoin and Stocks, Dollar and Yen Maintain Strength
| Action Insight Daily Report 12-5-24 |
Trump Trade Resurgence Boosts Bitcoin and Stocks, Dollar and Yen Maintain Strength |
US financial markets basked in risk-on sentiment overnight, with S&P 500 and NASDAQ scaling new record highs. Bitcoin seized the momentum, surging past the psychologically significant $100K mark. Dubbed the "Trump Trade," optimism over President-elect Donald Trump's policies has returned in full force and is likely to persist, barring surprises from tomorrow's pivotal non-farm payroll report. Fed Chair Jerome Powell's comments added to the upbeat tone, painting a positive picture of the economy. Additionally, the remarks suggested that he wouldn’t block another rate cut at this month’s meeting. While some Fed officials hinted at a pause in easing, a January timeframe appears more likely than December, keeping market participants optimistic about short-term monetary support. In Asia, cautious remarks by BoJ board member Toyoaki Nakamura caused slight Yen volatility. However, as a known dove, Nakamura’s statements may not fully reflect the board’s collective stance. His clarification that he isn’t opposed to a rate hike but urges caution keeps the market’s expectations for a December or January hike split, with January remaining as the more probable choice. Overall for the week so far, Dollar is currently the strongest performer, continuing the tight race with Yen, while Sterling ranks third. Conversely, Aussie and Kiwi lag behind, with the Euro not far ahead. The common currency was unfazed by France’s political turmoil after Prime Minister Michel Barnier's government fell to a no-confidence vote. Swiss Franc and Loonie are steady in the middle....s |
AUD/USD Daily Report Daily Pivots: (S1) 0.6390; (P) 0.6439; (R1) 0.6479; More... Intraday bias in AUD/USD remains on the downside for the moment. Fall from 0.6941 is in progress for 0.6348 support. Break there will target 0.6269 low next. On the upside, above 0.6503 minor resistance will turn intraday bias neutral again first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 00:30 | AUD | Trade Balance (AUD) Oct | 5.95B | 4.58B | 4.61B | 4.53B | | 06:45 | CHF | Unemployment Rate Nov | 2.60% | 2.70% | 2.60% | | 07:00 | EUR | Germany Factory Orders M/M Oct | -2.00% | 4.20% | | 07:45 | EUR | France Industrial Output M/M Oct | 0.30% | -0.90% | | 09:30 | GBP | Construction PMI Nov | 53.6 | 54.3 | | 10:00 | EUR | Eurozone Retail Sales M/M Oct | -0.40% | 0.50% | | 12:30 | USD | Challenger Job Cuts Y/Y Nov | 50.90% | | 13:30 | USD | Initial Jobless Claims (Nov 29) | 215K | 213K | | 13:30 | USD | Trade Balance (USD) Oct | -75.7B | -84.4B | | 13:30 | CAD | Trade Balance (CAD) Oct | -0.6B | -1.3B | | 15:00 | CAD | PMI Nov | 53.1 | 52 | | 15:30 | USD | Natural Gas Storage | -38B | -2B |
|
|
|
