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Forex Today: US Stocks Hit New Highs

Forex Today: US Stocks Hit New Highs

Positive results from banks and speculation on AI advances lift major US stock indexes to new long-term high prices.

➡️ US stock markets rose sharply yesterday, amid a strong bullish trend that saw prices advance to new 1-year highs in the NASDAQ 100 Index and S&P 500 Index. Yesterday's rise appears to be fueled by a good set of banking results, which extended the rally. Trend traders will be attracted to being Long these indices now.

➡️ In the Forex market, the Japanese yen weakened as the governor of the Bank of Japan stated that monetary easing will continue, pushing the USD/JPY currency pair up to 139.41 yen. EUR/USD hit another 15-month high yesterday above $1.1270, but made a bearish retracement. The Asian session saw the strongest major currency as the US dollar while the yen was the weakest.

➡️ Yesterday there was a release of Canadian CPI (inflation) data which came in weaker than expected, with a month-over-month increase of only 0.1%, lower than the 0.3% expected. However, other inflation metrics were higher than expected.

➡️ Yesterday there was a release of US retail sales data which came in lower than expected, with a month-over-month increase of only 0.2% when 0.5% was expected. This could strengthen the case for a smaller rate hike by the Fed in the near future.

➡️ Yesterday there was a release of New Zealand's CPI (inflation) data, which was higher than expected, showing a quarterly increase of 1.1% when only 0.9% was expected. However, the Kiwi weakened against the US dollar.

➡️ Today there will be a release of the UK CPI (inflation) data, which is expected to show a drop in the annualized rate from 8.7% to 8.2%.

 

Credit by DailyForex.com

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