Indices Bounce Back After Inflation Data

Indices Bounce Back After Inflation Data
The financial media's focus on the collapse of the SVB took a backseat as inflation data in the US was released. The data was in line with expectations, indicating that the FED's measures to combat inflation are effective. This, in turn, led to a solid bounce in the indices on Tuesday, which could potentially signal the start of a reversal. While futures before the European session are green on Wednesday, the rise is modest, and higher volatility may ensue later in the day.
In terms of today's calendar, the US will release retail sales, PPI, and Empire State Manufacturing Index, all of which traders expect to decline compared to the previous month. However, this could provide room for a positive surprise. Meanwhile, GBP and NZD speculators have much to look forward to, with the former focusing on the Annual Budget Release and the latter enjoying the GDP number at the end of the day.

Oil took a hit on Tuesday as both WTI and Brent continued to plummet, hitting new yearly lows. Gold also saw a slight dip as investors shifted away from safe-haven assets towards riskier ones. While the dollar's trading remains mixed depending on the pair, Wednesday saw a bit of USD strength. It remains to be seen if buyers can sustain it throughout the day.
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