FXCM’s US.BANKS basket bounces with Q2 earnings

  • US.banks

Weekly Analysis

FXCM's US.BANKS basket is trending up. It has charted a series of higher troughs followed by higher peaks. Moreover, its weekly stochastic has moved into its upper quintile (green rectangle) suggesting a strong underlying bullish momentum. The longer the oscillator maintains this position, the greater the likelihood that the basket appreciates further.

Daily Analysis

The daily chart shows the US.BANKS candlesticks trading in their bullish channel between the upper red and blue bands. The red Bollinger bands are also pulling away from each other (black ellipses), which denotes an increase in the basket's underlying volatility. The daily RSI is on the bullish side of 50 (blue rectangle), which is price supportive.


We find in interesting that it is essentially the interaction of the last three candlestick that have moved the Bollinger bands and indicated higher volatility. This coincides with the release of the big banks Q2 earnings.

Effectively we saw profits surging at JPMorgan Chase (JPM.us) and Wells Fargo (WFC.us) on Friday, posting profits of 67%and 57% respectively, in large part due to net interest income. Bank of America (BAC.us) kept up with the momentum yesterday, which saw profits increase by 19%.

Citigroup (C.us) disappointed somewhat with a 36% drop in profit. However, this was due to a slump in dealmaking rather than consumer based.

Trade the News: View our Economic Calendar

Morgan Stanley (MS.us) beat on earnings, but profit slid 12% also due to a slowdown in dealmaking. However, the bank compensated with good results from its wealth management business. It also raised its dividend by 9.7% to 85cps and authorised $20bn in share repurchases.

US.BANKS is rebounding after reaching its lowest point in 2023 following a series of regional bank collapses earlier this year, including the demise of Silicon Valley Bank in March.

Goldman Sachs (GS.us) reports later today.

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.