The US Benchmark

The US benchmark stock index, S&P 500 has suffered its steepest loss since October yesterday as the financial markets brace for uncertainties with regard to policies of the United States under Trump administration. However, the stock market is still up more than 9% since the election of Donald Trump Gold rallied to 3 weeks high on weak USD and safe heaven demand. The yellow metal broke the major resistance at $1237 and jumped up to $1247. The Dollar Index has broken major psychological support at 100 and declined till 99.66 yesterday and is trading at 99.79. The index is facing strong support at 99.25 and break below could drag the pair down till 98. USDJPY dropped to 4-month lows at 111.31 following the Asian equity markets deep in the red this morning after Wall Street had its worst session since the US election. EURUSD climbed above 1.08 yesterday and French stocks and bonds rallied, as centrist Emmanuel Macron’s chances of winning the French presidency seemed to have risen after his strong performance in the first TV debate on Monday The AUDUSD was down 0.4 percent at $0.7662, having lost some steam after rising to a four-month high of $0.7748 at the start of the week. Markets largely ignored Fed's Kaplan's comments, citing 3 US rate hikes this year as a 'reasonable' baseline case. The calendar today is largely filled with non-market moving events, however volatility is likely to be at high levels given the latest price action.