Good moods before Christmas, the zloty gains

After the declines of indices from the beginning of the week, which were caused by the Bank of Japan, there is nothing left. Yesterday, the stock markets, both American and European, recorded solid gains. Good moods in the markets were supported by rising consumer confidence in the US. The dollar index is at local lows.

Higher volatility is not excluded

The macro calendar for today is not empty but it doesn't seem to read CBA USA for the third quarter strongly influenced sentimentwhich have improved since recent central bank decisions. Much more important seems to be the day tomorrow, when investors will get to know the report on American spending. In particular, the reading of the PCE and PCE core indicators, which the Federal Reserve is looking at, is important.

If the downward trend in US inflation is confirmed, then we could see a bigger move weakening the dollar. Lower-than-forecasted values ​​should also give an impulse to increases on the stock market. In a much less liquid market, higher volatility is most likely.

Indices up, pairs down with the yen

Looking at stock indexes, looks positive Wig20, which managed to break the horizontal resistance determined by the local maxima. We are talking about around 1800 points. Thus, the price of the contract "came out" above the ascending triangle formation. From a technical point of view, we received an upward signal.

The German Dax is not yet above the November-December highs, but the Tuesday candle that was drawn on the chart (with a long lower wick) suggests that the gains may continue.

Na USD/JPY chart after the decision of the BoJ there were significant drops due to strong appreciation of the yen. The exchange rate of the currency pair fell to the technical support set by the August low. There is also an obvious divergence with the stochastic oscillator (on the daily interval), which suggests increases in the near future.

The zloty continues its good streak. EUR/PLN quotes reached 4,65 - the lowest level since August this year. This morning, the USD/PLN exchange rate leveled the low of December 15, which means a drop below 4,37.

Source: Łukasz Zembik, OANDA TMS Brokers