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Editors’ Picks

EUR/USD holds gains above 1.0700 as USD struggles ahead of data

EUR/USD holds gains above 1.0700 as USD struggles ahead of data

EUR/USD is posting small gains above 1.0700 in the European session on Thursday. The pair remains underpinned by a sustained US Dollar weakness, in the aftermath of the Fed policy announcements and ahead of more US employment data. 

EUR/USD News

GBP/USD stays firm above 1.2500 amid US Dollar weakness

GBP/USD stays firm above 1.2500 amid US Dollar weakness

GBP/USD is consolidating the rebound above 1.2500 in European trading on Thursday. The pair's uptick is supported by a broadly weakness US Dollar on dovish Fed signals. A mixed market mood could cap the GBP/USD upside ahead of mid-tier US data. 

GBP/USD News

Gold needs to reclaim $2,340 for a sustained recovery

Gold needs to reclaim $2,340 for a sustained recovery

Gold price is consolidating Wednesday’s rebound in Asian trading on Thursday, as buyers await more employment and wage inflation data from the United States for fresh trading impetus. Traders also digest the US Federal Reserve interest rate decision and Chair Jerome Powell's words delivered late Wednesday.

Gold News

Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now

Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now

Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.

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Happy Apple day

Happy Apple day

Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple. 

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S&P 500

The Standard & Poor's 500, abbreviated as the S&P 500, or just "the S&P” is a market value-weighted index of 500 large companies having common stock listed on the New York Stock Exchange (NYSE). It is seen as a leading indicator of U.S. equities and generally perceived as the most representative.

The S&P 500 stock market index, maintained by S&P Dow Jones Indices, comprises exactly 505 common stocks – including two share classes of stock from 5 of its component companies – issued by 500 large-cap companies and traded on American stock exchanges (including the 30 companies that compose the Dow Jones Industrial Average, DJIA) and covers about 80% of the American equity market by capitalization. The index is weighted by free-float market capitalization, so more valuable companies account for relatively more of the index. The index constituents and the constituent weights are updated regularly using rules published by S&P Dow Jones Indices.

The companies of the index are selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor's following selection criteria including market size, liquidity and industry grouping.

Over time, the S&P 500 can be used as a benchmark for the economy.


HISTORIC HIGHS AND LOWS FOR S&P 500

  • All-time records: Max: 3397 on 20/02/2020 - Min: 4.4 on 05/1932
  • Last 5 years: Max: 3397 on 20/02/2020 - Min: 1807 on 11/02/2016

* Data as of February 2020


ASSETS THAT INFLUENCE THE S&P 500 THE MOST

  • Currencies: USD.
  • Commodities: Oil and Gold.
  • Bonds: T-Bond (Treasury bond is a marketable, fixed-interest U.S. government debt security).

ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE THE S&P 500

Since the S&P 500 is a benchmark of American stocks, what will impact its value is related to all those decisions and figures that affect the results of big companies in the USA. That is, among others:

  • Economic indicators of inflation (CPI, PPI,...), consumer confidence (as Michigan Consumer Confidence Index), growth (GDP), employment (Non Farm Payrolls) and salaries (Average Hourly Wages)
  • interest rates decided by the Federal Reserve System, which is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises. Jerome Powell is the 16th Chair of the Federal Reserve, serving in that office since February 2018. He was nominated to the Fed Chair position by former President Donald Trump and confirmed by the United States Senate.
  • Fiscal policy, trade deals, business laws decided by the US administration (Joe Biden), but also by the US Treasury Department (Janet Yellen) and the US Department of Commerce (Wynn Coggins). The US Department of the Treasury's mission is to maintain a strong economy and create economic and job opportunities by promoting the conditions that enable economic growth and stability at home and abroad, strengthen national security by combating threats and protecting the integrity of the financial system, and manage the U.S. Government’s finances and resources effectively. The US Department of Commerce is an executive department of the federal government concerned with promoting economic growth. Among its tasks are gathering economic and demographic data for business and government decision-making, and helping to set industrial standards
  • Energy prices such as electricity, oil, etc...because they have impact on production costs for those companies that are part of the S&P500.