Indices happily welcome CPI data
14 February 2023
Monday finished with solid gains on the stock market in the anticipation of today’s inflation data from the US. Nasdaq climbed 1.5% higher, while S&P 500 and Dow Jones added 1.1%. On many indices, this might have been their best trading day of February and for several of them, the price is currently very close to the yearly highs. No wonder the market is glowing with optimism!
The calendar today offers more than the CPI, but it definitely is the most important reading. We already learned inflation expectations from New Zealand coming at 3.3%. NZD is currently the weakest currency in the pack – the traders did not really celebrate on this one. We also got the Claimant Count Change from the UK. The expectations were set on 17.9K, while the actual reading was -12.9K. The initial reaction on the GBP was positive.
The strongest currency at the beginning of the European session is the Japanese Yen, but don’t be fooled – the Yen was by far the weakest one yesterday, so what we are seeing today is just a correction of Monday’s weakness. The Dollar was also losing yesterday despite the strong morning start. The short-term negative sentiment towards the Dollar carries on on Tuesday as well, which is significantly helping the precious metals. Gold, for example, is currently trading 0.4% higher, while palladium starts the European session with a 1% rise. The opening of a new week was quite disastrous for the orange juice, who collapsed by 10%. Anyone fancy a glass?
For those wondering how to trade the alien invasion, you may now take a breather, as the US officials denied that the objects flying over the US lately had anything to do with the extraterrestrials. Although we have to admit that after the war and pandemic, an alien invasion would be a really hefty joke from the universe.