Interest Rate Decision Wednesday

But let's not forget about yesterday - Inflation Day in the US. The inflation came in lower than expected at 4%, suggesting that US policymakers are making strides in combating rising inflation.

The UK also released important data yesterday. The Claimant Count Change figure, which is an indicator of unemployment, came in lower than expected - a positive sign for the economy. Also, the Average Earnings Index exceeded expectations, and unemployment dipped to 3.8%, further indicating strength in the UK job market. Consequently, the British Pound emerged as the strongest currency yesterday.

In contrast, the American Dollar and Japanese Yen were the weakest currencies. USDJPY initially dropped, then sharply reversed, breaking the upper line of the pennant formation. This price movement triggered a strong buy signal. Conversely, the USDCAD broke the lower line of the pennant formation, indicating that a further decline is likely, potentially signaling a long-term sell opportunity.

Looking at indices, they continued their climb yesterday. While the bullish wave is extending and may warrant a bearish correction, the long-term trend remains positive.

On the commodities front, precious metals largely moved sideways, but oil presented an interesting trajectory. Notably, Brent Oil rebounded, bouncing off its key long-term horizontal support at $71.6 per barrel. Now back within the rectangle pattern, it is more likely to move sideways. For a new trading signal, we either need further developments within this rectangle pattern or a breakout from it. Be sure to keep a close eye on these market movements for investment opportunities.