Nasdaq drops to 200-day average, dollar eases

Nasdaq drops to 200-day average, dollar eases
US stocks continued to decline on Wednesday, with the tech-heavy Nasdaq 100 index dropping to the 15,000 USD threshold, where the 200-day moving average lies.
The index has not touched its 200-day average since April 2020, pushing the uptrend into extreme overstretched conditions as corrections to that average are welcome in a healthy bull market.

From other news, British CPI rose more than expected to 5.4% in December, its highest in almost 30 years. It came out above expectations of 5.2% and up from 5.1% in November. 

The increase in CPI to its highest since March 1992 reflected a wide range of goods and services, the Office for National Statistics said, with the most significant impact coming from food and drink, followed by restaurants and hotels.

Later today, BoE Governor Andrew Bailey is due to testify, along with BOE Deputy Governor Jon Cunliffe, on the Bank of England Financial Stability Report before the Treasury Select Committee in London. There could also be questions regarding the soaring inflation and what the BoE plans to avert it.

Additionally, Canadian CPI will be released, expected to tick higher yearly, possibly influencing the Canadian dollar. Finally, from the US, building permits and housing starts are due.

The US dollar strengthened notably yesterday, pushing the dollar index back above the long-term uptrend line. However, we are seeing some profit-taking today, dragging the index lower again as traders remain unimpressed by the recent rise in US yields.

In commodities, WTI oil rose above 86 USD, hitting multi-year highs as the bull market continues without interruptions. Silver also jumped, but gold struggled yesterday. 
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