S&P 500 nearing new high!
Today the benchmark S&P 500 continued to climb ever closer to setting a record high.
Fresh from a week-long rally, the index continued to gain on Monday, moving up by 0.35%. Gains were led by moves in Apple, Alphabet and Microsoft.
This has resulted in the market now trading above the key resistance level of 3382.
If a breakout does occur, moving the index beyond 3397, it will be the first time since February the S&P 500 would have set a new high.
Japanese economy shrinks at a record pace
Like most economies around the world the Japanese economy has suffered from the effects of Covid-19, with the economy experiencing a record slump in the second quarter of 2020.
Japan, which is the world’s third largest economy contracted by 27.8% in April-June.
This is the biggest ever decline since records began in 1980. USDJPY dropped below 106 as a result of the news.
UK Households continue to experience financial strains
Although life after the apparent worst of the COVID-19 pandemic is well underway, data released today showed that UK households continue to face financial strains.
The IHS Markit Household Finance Index dropped to 40.8 in August after coming in at 41.5 in July.
Traditionally a reading below 50, suggests contraction. Today’s figures are the biggest drop since 2011.
GBPUSD continued to consolidate at the resistance level of 1.3100 as a result.
Quote of the day: “Why do you think unsuccessful traders are obsessed with market analysis? They crave the sense of certainty that analysis appears to give them. Although few would admit it, the truth is that the typical trader wants to be right on every single trade. He is desperately trying to create certainty where it just doesn’t exist.”Mark Douglas
BTCUSD: Bitcoin today rose by over $500 to easily win the title “Bull off the day”. BTCUSD rallied to as high as $12,484 after starting the day at $11,885.
USDJPY: As Japan saw its biggest ever economic contraction in Q2, USDJPY today dropped to a low of 105.942. The pair started the day at 106.605.