Will Today's Inflation Unveiling Shift the Trading Winds?
12 October 2023
With anticipation high, traders around the globe have eagerly awaited Thursday's updates. Chief among today's developments is the impending U.S. inflation data. Expected to clock in at 3.6%, this figure marks a slight downturn from the prior 3.7%. Yesterday's Producer Price Index (PPI) saw a modest uptick, yet the impact remained relatively muted. The Federal Open Market Committee (FOMC) meeting minutes also provided a glimpse into the Fed's stance. Notably, a consensus emerged that economic projections remain fraught with uncertainty. The heightened inflation levels were dubbed "unacceptably high" by officials, hinting at potential future policy shifts.
On the indices front, we're seeing continued bullish momentum. This is particularly pertinent for the NASDAQ, which is on the cusp of breaking out from its wedge pattern. The S&P500, too, charts a bullish trajectory, having rebounded above the head and shoulders pattern's neckline.
Forex market developments are led by the EURUSD, which is poised to break the neckline of its inverse head and shoulders pattern, hinting at a buy signal. Meanwhile, the USDCHF pair signals dollar weakness, with the pair dipping to its lowest since September 21st.
In the commodities space, the trend remains clear. Safe havens continue their upward march, with gold zeroing in on the $1900 mark and silver inching close to its $22.24 resistance. However, oil portrays a contrasting picture. Both WTI and Brent have recoiled from their key resistances, ushering in a bearish sentiment.