Stock markets have risen almost everywhere over the past day, especially in the United States, where data later today is expected to show annualized inflation will continue to fall.
➡️ Crucial US CPI (inflation) data will be released today, which has proven to be the key driver of the Forex market in recent years. Annualized inflation is forecast to fall from 3.2% to 3.1%, with monthly data showing neither inflation nor deflation. Core inflation is expected to show a monthly increase of 0.3%. If the data is lower than expected, there will likely be a sharp rise in major US stock indexes and a decline in the US dollar, and vice versa if the data is higher than expectations.
➡️ Stock markets are strong today, with the NASDAQ 100 index which closed yesterday at a new nearly 2-year high, while the benchmark S&P 500 index closed at an 18-month high. Both indices, and other major stock indices, will be attractive to traders following trends on the Long side. Many analysts believe that major US stock indexes will likely hit new all-time highs in 2024.
➡️ In the Forex market, since the opening of Tokyo, the New Zealand dollar has been the strongest major currency, while the US dollar has been the weakest, focusing the NZD/USD currency pair. There currently appears to be no valid long-term trends to exploit in this asset class, with the direction of the US dollar looking uncertain before the US CPI data is released.
➡️ Bitcoin continues to fall from its recent 18-month high above $44,000the. It remains to be seen whether it will stabilize at nearby support levels, where trend-following traders may still find new long entries.
➡️ Cocoa futures closed last Friday at a multi-year high weekly closing price.
➡️ UK claimant count (unemployment claims) data will be published today.
Credit by DailyForex.com