Markets are anxiously awaiting today's release of crucial US consumer price index data, which is expected to show a decline from last month's figures. The outcome will likely impact the stock and Forex markets, particularly the US dollar.
➡️ US CPI (inflation) data will be released today which is expected to show a decline in the annualized rate from 3.3% to 3.1%. However, the month-over-month change is expected to rise from last month's 0.0% to this month's 0.1%. Higher-than-expected inflation will almost certainly trigger a sell-off in stocks and boost the US dollar, while lower-than-expected data will have the opposite effect.
➡️ We have seen stock markets continue their bullish movements towards new all-time highs. This rally is seen as led by technology stocks and has continued into today's Asian session, with stocks trading near their highs near the Tokyo close. We are seeing new all-time high prices in the index NASDAQ 100 and in the broadest S&P 500 index. Most global stock indexes are bullish, with Japan again in focus today as the index Nikkei 225 rose to close at a new record above 42,000. Japan's TOPIX also rose today to trade at a new all-time high. These are bullish signals for stocks and trend traders will want to get involved here on the Long side.
➡️ In the Forex market, the New Zealand dollar is the strongest major currency since Tokyo opened, while the US dollar is the weakest, highlighting the NZD/USD currency pair. The USD/JPY currency pair continues to show a valid long-term uptrend and trend traders will still want to get involved here, especially as recent highs near ¥162 are under threat.
➡️ UK GDP data released today showed a stronger than expected increase, with a monthly gain of 0.4% when only 0.2% was expected. The pound rose a bit on the news, but still looks quite bullish, with the GBP/USD currency pair which it had previously traded at a new 4-month high price.
➡️ Data on unemployment claims in the United States will be released later in the day.
Credit by DailyForex.com