Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the recent central bank commentary that has turned relatively hawkish:

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Daily Forex Insight

Here are some insights from the currency strategists at dailyfx. They cover the fundamentals and technicals of key Forex pairs and other key markets along with some of the key economic news of the day. Today's commentary looks at the impact of recent news flow on financial markets:

Market Signals for the US stock market S and P 500 Index and Indian Stock Market Nifty Index for the Week beginning February 6

Indicator	Weekly Level / Change	Implication for S & P 500	Implication for Nifty*
S & P 500	2297, 0.12%	Neutral	Neutral
Nifty	8741, 1.15%	Neutral**	Bullish
China Shanghai Index	3140, -0.60%	Bearish	Bearish
Gold	1221, 2.73%	Bullish	Bullish
WTIC Crude	53.83, 1.24%	Bullish	Bullish
Copper	2.62, -2.73%	Bearish	Bearish
Baltic Dry Index	752, -9.07%	Bearish	Bearish
Euro	1.079, 0.81%	Bullish	Bullish
Dollar/Yen	112.61, -2.11%	Bearish	Bearish
Dow Transports	9242, -2.15%	Bearish	Bearish
High Yield (ETF)	36.88, 0.15%	Neutral	Neutral
US 10 year Bond Yield	2.49%, 0.40%	Neutral	Neutral
Nyse Summation Index	654, -4.10%	Bearish	Neutral
US Vix	10.97, 3.69%	Bearish	Bearish
20 DMA, S and P 500	2278, Above	Bullish	Neutral
50 DMA, S and P 500	2255, Above	Bullish	Neutral
200 DMA, S and P 500	2161, Above	Bullish	Neutral
20 DMA, Nifty	8473, Above	Neutral	Bullish
50 DMA, Nifty	8268, Above	Neutral	Bullish
200 DMA, Nifty	8352, Above	Neutral	Bullish
India Vix	13.13, -17.98%	Neutral	Bullish
Dollar/Rupee	67.17, -1.35%	Neutral	Bullish
Overall	S & P 500	Nifty
Bullish Indications	6	9
Bearish Indications	7	6
Outlook	Bearish	Bullish
Observation	The S and P 500 was unchanged and the Nifty rallied last week. Indicators are mixed. The Trump bounce is largely over. Time to watch those stops.
On the Horizon	China – New loan data, Australia – Rate decision, New Zealand – Rate decision,  U.S - U. Mich. consumer confidence,  Canada –Employment data, India - RBI rate decision
*Nifty	India’s Benchmark Stock Market Index
Raw Data	Courtesy Google finance, Stock charts, dailyfx.com
**Neutral	Changes less than 0.5% are considered neutral

The S and P 500 was unchanged and the Nifty moved up last week. Signals are mixed for the upcoming week. Possible FED rate hikes are yet to be priced in and sentiment indicators are back in complacent mode. Bond yields are surging back up. Transports are under performing and the Baltic dry index is crashing again. The critical levels to watch are 2310 (up) and 2290 (down) on the S & P and 8800 (up) and 8700 (down) on the Nifty. A significant breach of the above levels could trigger the next big move in the above markets. You can check out last week’s report for a comparison. Love your thoughts and feedback.