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Forex Today: US stock indexes close at record highs ahead of CPI and FOMC

Forex Today: US stock indexes close at record highs ahead of CPI and FOMC

As markets await tomorrow's US CPI data and FOMC release, major US stock indexes continue to close at new all-time high prices, suggesting market confidence in a gradual path to rate cuts.

➡️ Two of the main US stock indexes, the NASDAQ 100 and the S&P 500 , closed yesterday at new all-time record prices. European stock markets are also quite bullish. This comes as markets await the release of tomorrow's crucial US CPI (inflation) data, as well as the Fed's policy statement – this will be a big day for the Forex market, with a spike in volatility expected. The Fed is not expected to make any changes to rates, the important details will all be in the statement and forecast.

➡️ Precious metals are weak, with They which appears heavy as it is trading very close to the 2 month low near a support area to around $ 2285. A break below this level could trigger a stronger decline.

➡️ L'The euro collapsed on news of the results of the European Parliament elections in France and Macron's shock call for a general election that could result in the country's first far-right government since World War II. However, the euro now appears to have found support, with the EUR/USD currency pair which is based on the big quarterly number of $1.0750.

➡️ In the Forex market, the strongest major currency since the Tokyo open is the Euro, while the Japanese Yen has been the weakest major currency.

➡️ The Indonesian rupiah is trading at a 4-year low, but a rate hike seems unlikely as President Widodo seems relaxed about the rupiah's weakness. Bank Indonesia only expects the exchange rate USD/INR above 16,300, but at the time of writing the price is trading precisely at this level.

➡️ Change in UK claimant count data released today in the UK was worse than expected, suggesting a slowdown in the UK economy.

 

Credit by DailyForex.com

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