Investment Portfolio

Gain: 

Pulse Wallet

Gain: 

REA Learn Copy

Gain: 

Quick Tools:

Forex Today: US inflation slightly lower, risk-on rally

Forex Today: US inflation slightly lower, risk-on rally

US consumer price index data released yesterday were slightly lower than expected, with inflation rising by just 0.3% over the month, triggering a rally in risk appetite that led stocks to new historical highs.

➡️ Yesterday the most important macro data on the market arrived: the US consumer price index, slightly lower than expected, with a month-on-month increase of only 0.3%. While this was only slightly below expectations, the data sent stock markets surging to new all-time highs, notably in both the NASDAQ 100 Index and the S&P 500 Index . Several commodities also saw price increases, while the US dollar sold off as the news is likely to slightly pre-empt rate cut expectations. It's unclear whether this rally in risk appetite has much further to go today as the market begins to question whether it has overreacted, but new long-term highs are usually best interpreted as a bullish signal.

➡️ In the Forex market , the main story is the new weakness of the US dollar, so Forex traders may want to look for short-term dollar trades. Since Tokyo opened, the strongest major currency is the Japanese yen, while the Australian dollar is the weakest.

➡️ Gold and silver rose yesterday, with silver looking even more bullish having hit a new 2-year high. Silver will be particularly interesting for traders who follow trends on the long side.

➡️ Copper futures continue to advance towards new 2-year high prices, so will be interesting for trend traders on the Long side.

➡️ Crude oil rose slightly yesterday due to falling US inventories and growing risk appetite, suggesting WTI may bottom at $78.

➡️ Yesterday the following data were published, in addition to the US CPI:

  • US Retail Sales: Well below expectations, suggesting slowing demand, which supports the case for previous rate cuts.
  • US Empire State Manufacturing Index: Only slightly worse than expected.
  • Australian Unemployment Rate: Saw an unexpected increase from 3.9% to 4.1%.

 

➡️ US unemployment claims data will be released later today.

 

Credit by DailyForex.com

en_USEN

Investment Portfolio

Copy strategies

Find out how our strategies copy works. You can copy our strategies without costs and without risk with a demo account, and with a real account in exchange for a profit-share.

REA TradeKit

Access Advanced Tools and Strategies.

14 day money back guarantee.

Free Resources

Mentoring 1 to 1

Reavolution's 1-to-1 mentorships allow you to learn our strategies directly from our trainers.

Main Categories

Forex Calculators

Commercial Lotto Calculator

Leverage and Margin Calculator

Drawdown Calculator

Compound Interest Calculator

Pips Value Calculator in Euros

Economic Calendar