U.S. Senate Democratic and Republican leaders lifted equities market 14/10/13 at 20:42 GMT

Oct 14


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  • October, 14th, 2013 20:44 +00:00

The negative correlation between gold and equities can explain this trading environment. When the white house announced that U.S. senate democratic and republican would meet U.S. President gold was trading on its intraday high, recovering from 2 consecutive losing trading sessions. Stock indices were on their intraday low. Then catalyst inverted the performances. The optimism to reach an agreement are so high that gauges closed nearly their intraday high: S&P index closed at 1710.14 (+0.41%), Nasdaq at 3815.27 (+0,62%). Nasdaq index is trading near its 2013 high resistance and the S&P is struggling as well to consolidate above 1710. In the currency market the EurUsd is trading at 1.3563 and this is the second consecutive trading day that the pair closed near its low. The UsdJpy just closed the gap at 98.52 and could stay above its 21SMA. GbpUsd is trading below 1.6 psychological level at 1.5984. The 17th October deadline for the debt ceiling increase seems now  discounted in prices with a positive solution, but  risk appetite likely will still volatile considering the evaluation of financial assets and the release of quarterly earnings.