S&P 500 rally powers ahead while USD/JPY and silver price rise
Technical analysis of the S&P 500 as it continues to rally while USD/JPY and silver price rise as well.
Macro update
UK budget in focus:
Sterling extended its five-day advance ahead of today’s UK Autumn Budget, with markets bracing for significant tax rises aimed at reinforcing fiscal credibility.
Asia tracks Wall Street higher:
Regional equities climbed after softer US data strengthened expectations of a Federal Reserve (Fed) rate cut next month, lifting the MSCI Asia-Pacific ex-Japan index by about 1%.
Japan turns more hawkish:
The Japanese yen firmed on reports the Bank of Japan (BoJ) is preparing markets for a potential December rate increase, while short-dated JGB yields rose to their highest levels since 2008.
Antipodean currencies diverge:
The New Zealand dollar jumped after the RBNZ cut rates but removed its dovish bias, while Australian assets gained as hotter inflation data suggested the Reserve Bank of Australia (RBA) may pause further easing.
Oil steadies after swings:
Brent crude oil rebounded from a five-week low as President Trump softened his deadline for Ukraine to accept a peace plan, a shift that could influence Russian supply prospects.
AI fuels mega cap momentum:
Alphabet approached a $4 trillion valuation in pre-market trading, extending a year-long rally underpinned by strong demand for AI-driven products.
S&P 500 rallies from key support
The S&P 500 has shaken off last week's sharp sell-off as risk-on sentiment dominates this week due to Fed rate cut hopes.
Tuesday's rise and daily chart close above Thursday's 6,770 high is technically bullish with the 6,800 region being next in line.
Minor support may be seen around the 55-day simple moving average (SMA) at 6,716.
S&P 500 daily candlestick chart
USD/JPY comes off nine-month high
USD/JPY is seen retracing from last week's nine-month high at ¥157.89 but seems to be stabilising above its October-to-November uptrend line at ¥155.46. While it holds on a daily chart closing basis, the short-term uptrend will remain intact.
A rise above the recent high at ¥157.89 will likely engage the ¥158.20-to-¥158.55 January highs.
USD/JPY daily candlestick chart
Silver price continues to rise
The price of spot silver continues to advance and is fast approaching its 19 November high at $52.4681. A rise above this level would put the October-to-November peaks at $54.3935-to-$54.4852 back on the cards.
Minor support may be found around the $50.6193 mid-October low.
Silver daily candlestick chart
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