WallStreet: Dow Jones 'breathes glory' above 21000

Not a tweet, just a more presidential president which translated into an educated, soft and progressive speech that Congress and markets seemed to welcome. However, out of thin air the US dollar, treasuries, and equities continued to operate as that same speech avoided the necessary details to generate such experienced euphoria, once again, President Trump seduced the masses with words; but for how long?

As of writing, FedWatch probability clocks 66.4% which translate into a new reality where 'the odds are moving to favor' March as the fairly soon moment for the Fed to hit the markets with the first rate hike in 2017.

US indexes ended on a mixed note as the Dow Jones Industrial Average reached historical levels at 21,115.55, up +1.46% or +303.31 points, then the always active SP500 also surfing higher waves at +1.37% or +32.32 points ending at 2,395.96 and finally, the tech heavyweight Nasdaq banked a positive trading session at +1.35% or +78.59 points to settle the score at 5,904.03 on the last trading hour.

On the FX front, the dollar collected 'mixed results' in the foreign exchange battlefield as the American dollar vs. Japanese Yen touched the 114 mark to drift back to 113.70/60 region, still up 100-pips on the day. On the other hand, against the British pound, the greenback had another successful run as the GBP/USD pair crashed close to 120-pips on the day. Later, the USD/MXN exotic felt the brakes down on the day -1.31% or (2605)-pips. Finally, commodity-linked currencies as USD/CAD, AUD/USD, and NZD/USD experienced mixed results on the day as the greenback slashed 160-pips across all of them.

US data better than headlines are telling us? - ANZ

Turning to market volatility and leading indicators via yields, the iPath SP500 VIX Short-term Futures or VXX, down -4.26% on the day or -0.78 at 17.64 compared to 23.70 at the beginning of January which indicates the level of 'comfort' market participants seem to enjoy lately. On the other hand, US yields experienced an interesting trading session that traders visualized on the US dollar Index and US pairs, when the US 10yr treasury yields traded from 2.46% to 2.39%, up to a robust +2.70% on the day at 2.45% or +0.0645.

On the commodity front, Gold spot ended near $1248 as the shiny metal clocked a high near $1250 and low around $1236; the asset could be initiating a pullback towards $1210. Then, Silver spot continued on green pastures near $18.41, up +0.63% on the day after a deep near $18.22. Still, from this level, the 'poor man's gold' could target $18.80 (high Nov. 11) and above that $19.25 (high Oct.3). Later, WTI retraced from highs at $53.86 after printing a high near $54.41, such price action accumulates 7-consecutive trading sessions where the asset could not break above the $54 level.

Gold Intermarket: Gold bugs riding the bullish waves, for now unless DXY gives in