The high print for US CPI has driven the US$ up and US stocks down. There were sharp moves across Forex pairs but watch key S/R levels once this dust settles.
The stock rally has paused ahead of key US inflation data due out later today. Gold is higher though and has broken up through the multi month bear trend line but the EUR/USD remains near 1.16.
The US$ remains weaker despite higher yields, strong economic data and upbeat earnings and I am not the only one noticing this phenomenon. Kathy Lien made comments today along the same wavelength. The S&P500 has made its first daily close above 4,700 and Gold looks ready to take on a multi-month bear trend line.
Last week: US equities shrugged off FOMC taper talk and were no doubt lifted by the upbeat US jobs report with all four of the US stock index majors closing at new all-time weekly highs. Even more positive news was released after Friday’s US market close with the passing of President Biden’s bipartisan infrastructure bill […]
The S&P500 closed at another new high and the US$ is a bit higher as well ahead of today’s US jobs report. Momentum is low on the daily DXY chart so watch that for clues about the next directional move following the NFP update. The GBP pairs were sharply lower after the BoE update.