Commodities climb higher with weaker Dollar

Commodities climb higher with weaker Dollar
Welcome to the US inflation report! The calendar is pretty packed today, but with data that matters the most. CPI is expected to drop significantly from previously reported 6% to 5.1% year-on-year (YoY). CPI is the key data on the calendar and the first, but certainly not the last, tier one data today. A couple of minutes later, we will get the interest rate decision from Canada, where no change in rates is expected.
Central banks will also be visible today. Together with the interest rate decision, we will have a press conference from the BOC. In addition to that, we will get meeting minutes from the FOMC and a speech from the BoE Governor Bailey. Finally, some action after Easter!

Ahead of this, we can see a small correction on the American Dollar. The EURUSD is climbing to weekly highs. USDCHF bounces off a key resistance at 0.91 and goes lower. USDCAD is approaching the long-term up-trend line with a possibility of a breakout; and GBPUSD, after a correction, is trying to climb back above the 1.243 resistance.

The weakness of the Yen is also quite visible. The USDJPY, despite the correction on the USD, is still climbing higher. GBPJPY is making new highs for 2023 today, and the same goes for the EURJPY, where the price is escaping a big symmetrical triangle pattern.

The problems of the American currency have their reflection in commodities. Gold continues its upswing which we mentioned in our analysis yesterday. Also, oil finally moved. We are still going pretty much sideways, but now the price is putting pressure on the upper line of the rectangle, which increases the chances of a bullish breakout.

Last but not least, let's check the indices. The situation here is still under bullish control. DAX remains close to the long-term highs, S&P 500 is trading with a bullish sentiment, but probably the biggest strength can be seen on Dow Jones who is currently on the highest levels since February 21. Let's see if these trends continue tomorrow after today's macro calendar festival.
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