2016-11-23 10:38:22

It is likely that today investors will continue to take profit gained on the rapid growth of the USD and the stock market before the days off due to Thanksgiving Day. At the same time overall uptrend in the USD and the US stock market will continue

After the election of Donald Trump as new President of the United States of American, US stock indices and the USD have showed impressive growth.

On Wednesday, at the Asian session and at the beginning of European the USD was declining. The index WSJ, which traces the value of the USD against a basket of the other 16 currencies, has dropped by 0.1% to 91.27. Until this moment the index WSJ has been growing for 10 consecutive sessions, which was the longest period of growth since May 2012.

It is expected that the Fed will raise interest rates at the meeting in December and this decision will support the USD. Judging by the futures market, probability of the rate hike in December is 94%.

Less than three weeks ago, the index DJIA was below 18000 points. But after the presidential election in the United States it started to rise.

Today, the index DJIA is near the level of 19040, the index S&P500 has reached 2203 points, and the index Nasdaq Composite has increased to 5385. These are new record levels for all three indexes.

From 9 November up to yesterday DJIA has grown by 3.4% and S&P500 - by 2.7%. Now, the index DJIA may finish the year with the growth of 9.2% and the S&P500 with the growth of 7.8%. The highest rise was demonstrated by the shares of financial and industrial sectors of the U.S. economy.

The US economy is growing; it is expected that public spending will increase next years, as suggested by Trump’s economic policy, which will beneficial in the short term outlook. The US interest rates are likely to be raised in December and probably next year, which will stimulate the rise in shares of the banks and financial sector.

Today investors ' attention will be focused on the minutes of the FOMC meeting, which will be released at 21:00 (GMT+3). It is expected that volatility will increase in the financial markets. Thursday is a day off in the USA and the US markets will be closed.

S&P500: Correction may take place due to profit taking.  Fundamental analysis for 23/11/2016