STOCK MARKETS MOVE TO RECORD HIGHS AS THE GREENBACKS DECLINE GATHERS PACE
DOW JONES 25,000
The Dow Jones industrial average moved above 25,000 for the first time ever this week, making the fastest one thousand-point move in its history. Stronger-than-expected December jobs data from the United States economy boosted the 30-stock index, with companies such as IBM and American Express leading the way.
The Dow Jones broke above 24,000 for the first time on Nov. 30 last year prior to hitting 25,000, it also took the Dow just 35 days to rise from 20,000 to 21,000 last year.
The U.S dollar index continued to move lower this week, bringing the theme of overall dollar weakness into 2018, that was seen towards the end of last year. The U.S dollar index moved below the key 92.00 level, falling sharply against the British pound and swiss franc currencies. Commodity related currencies also moved higher against the greenback, with the NZDUSD pair breaking above the 0.7100 handle, while the AUDUSD pair climbed towards the 0.7900 resistance level.
The only bright spot for the U.S dollar came against the Japanese yen currency this week, with the USDJPY pair turning higher, as the Federal Reserve promised to continue to gradually raise interest rates this year, while the Bank of Japan’s fiscal policy remains ultra-accommodative.
The USDJPY pair remains medium-term bullish while trading above the 112.48 level, further upside towards 113.10 and 114.40 seems possible.
Should price move below the 112.48 level for a sustained period, sellers may target the 112.03 and 111.68 support regions.
ETHEREUM BREAKS $1,000
The price of Ethereum finally broke above the $1,000 level for this week, as bargain hunters continued to pile into the third largest cryptocurrency. Ethereum’s market capitalization also moved over one hundred billion U.S dollars, as its value soared alongside other popular cryptocurrencies such as Ripple and Dash.
Bitcoin suffered mixed fortunes in the first trading week of 2018, moving in a broad-range between $13,000 and $15,500. Reports broke that PayPal founder Peter Thiel has large holdings of Bitcoins, encouraging digital currency investors this week, however Bank of America announced on Thursday they are blocking staff and clients from trading in Bitcoin related investments.
BTCUSD remains bullish while trading above $14,400 level, further upside towards $15,750 and $16,400 remains possible.
Should price-action on BTCUSD decline below the $14,400 level, sellers may test towards the $13,880 and $13,000 levels.
EURO ON TOP
The single currency gained ground against a basket of top-tier currencies this week, as investors continued to pile into euro’s, as the economic recovery continues in the eurozone. Strong PMI Manufacturing figures from Germany and France gave the EURUSD a boost above the 1.2000 level, with the pair reaching towards the multi-year price high set in 2017. The euro also moved higher against the Japanese yen and the British pound, with the EURJPY pair breaking well above the 136 handle.
The EURJPY pair remains strongly bullish while trading above the 135.90 level, further upside towards 137.18 and 138.80 seems likely.
A decline below the 135.90 level may lead to a sell-off in the EURJPY pair towards the 135.50 and 134.80 support zones.