Trading Insights: New period of prosperity has started

Market Talk

Commentary:

After a very long period of highly unusual ultra low interest rates, the actions of the US Federal Reserve (the “FED”) appear to have started to have the desired effects.

The key indicators have already started to shift back towards historical norms:

Source: Fred economic data / J. Knobel June 16 2023 7.50 UTC

Price is a leading indicator

• US100 Index +30.73% in 52 weeks
• SPX500 Index +20.49% in 52 weeks
• US30 Index +14.79% in 52 weeks

The above chart illustrates the last 1 year percentage performance for the three leading US stock market indices.

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Today’s economic calendar

Source: TradingView / J. Knobel June 16 2023 :46 UTC

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Commentary & insights

EUR/JPY breaks above 15 year highs

• Bank of Japan (BOJ) did not hike interest rates, held the rate at -0.1%.
• The European Central Bank (ECB) hiked the rate to 4% and signaled that they are not done hiking

Technical commentary: EUR/JPY bull trigger event after the key resistance at 153 failed to hold down price. Prospects for resumption of longer term trend for next leg up towards the 156.40s can not be ruled out. Downside risk below 153 could place 147.60s in sight.