S&P 500 INDEX ROCKETS HIGHER AS SENATE NEARS FUNDING DEAL

Global stocks jumped on Thursday as investors assessed the proposed debt ceiling deal in the United States. The DAX, CAC 40, and FTSE 100 indices rose by more than 1% while futures tied to the Dow Jones and S&P 500 rose by more than 0.50%. Senator Mitch McConnel offered a temporary relief that will see the US hike the debt ceiling. He expects that Democrats will use the time to raise the debt ceiling on their own through a complicated process known as reconciliation. In recent testimony, Janet Yellen, the Treasury Secretary warned that the country would run out of cash by October 18th.

The British pound held steady against the US dollar after the latest UK home price numbers. Data published by Halifax showed that the country’s home prices rose from 0.7% in August to 1.7% in September. That was the highest figure since 2017. On a year-on-year basis, home prices rose from 7.2% to 7.4%. Home prices have jumped by more than 21,000 pounds since the pandemic started. Still, there are fears that the rising home prices will lead to a property bubble that will soon burst.

Cryptocurrency prices retreated slightly as the market reflected on the recent spectacular rally that pushed Bitcoin above $55,000 for the first time since May. The combined market capitalization of all cryptocurrencies tracked by CoinMarketCap surged to more than $2.3 trillion. This rally was attributed to news that Soros Fund Management had acquired some Bitcoins. This was a notable announcement since George Soros is one of the wealthiest people in the world. Another catalyst was the partnership between Stellar Foundation and MoneyGram.

BTCUSD

The BTCUSD pair rallied to a high of 55,000 on Wednesday. Today, the pair retreated to a low of 54,000 as the rally took a breather. Still, the price is slightly above the 25-day and 50-day moving averages. It is also slightly above the key support level at 53,000, which was the highest level in September. Therefore, the pair will likely retest this support and then resume the bullish trend. In the next few days, the pair will likely retest the resistance at 60,000.

EURUSD

The EURUSD pair was little changed today as investors waited for the upcoming US jobs numbers. The pair is trading at 1.1568, which is slightly above this week’s low of 1.1530. It is slightly below the 25-day and 50-day moving averages while the MACD has moved below the neutral level. The pair has also formed what looks like a bearish flag pattern. Therefore, it will likely break out lower in the near term.

SPX500

The S&P 500 futures jumped sharply as investors cheered the new deal on government funding in the US. The index rose to a high of $4,395, which was the highest level since September 28. On the four-hour chart, the pair moved above the neckline of the triple-bottom pattern at $4,373. It also rose slightly above the 25-day and 50-day moving averages. Therefore, the index will likely keep rising as risks ease.