U.S. stocks closed higher on Tuesday as the focus shifted to the FED’s rate decision due next week.
The Dow finished the day slightly above the flatline adding 0.03%, the S&P500 continues to hover near a nine-month high as the index gained another 0.24% while the Nasdaq rose 0.36%.
In the crypto market, Coinbase fell more than 12% after the Securities and Exchange Commission sued the company. Meanwhile, Bitcoin price edged higher by 6%.
Looking at the recent price action in both the currency market and gold, we have seen sideways trading in many major currencies on Tuesday due to the lack of economic releases. The Australian Dollar surged after the Reserve Bank of Australia surprised market participants with another 25bps rate hike.
In the meantime, gold traded inside a $12 range located between 1954 and 1966 levels. Therefore, the yellow metal is expected to continue trading sideways in the coming days until we see a clear break either above the $1985 resistance or below the $1932 support.
The WTI crude ended the day lower after failing to hold early gains despite Saudi Arabia’s surprise cut. Prices were down -0.64% settling at $71.69 a barrel.
Looking at today’s economic calendar, the Bank of Canada is expected to keep interest rates unchanged at 4.50% later today, the USDCAD currency pair is likely to see increased volatility at the moment of the release. A few minutes later, Oil traders will be looking at the latest crude oil inventories.
Economic Analyst
Amine Hiani