Spreadex Market Update
Powell Avoids Rates Comment – Markets In Limbo Ahead of US CPI Tomorrow
Equities Markets Soared on Wednesday
Equities markets saw strong gains yesterday amidst muted USD action and the ongoing lift in sentiment linked to China reopening. The DAX broke out to its highest levels since February 2022 while the FTSE was seen testing levels last seen in 2018. US stocks were higher also, bolstered by expectations of further cooling in CPI to be shown in today’s data. Despite hawkish commentary from key Fed members this week, there seems to be a growing view that a soft CPI reading today will pave the way for a further slowing of Fed tightening at the next meeting on Feb 1st.
EUR Rally Continues – ECB Bulletin Due
The ongoing soft patch in USD continues to support EUR into the end of the week. Better eurozone data recently and lower energy prices are helping boost the growth outlook. Traders now await the ECB economic bulletin due shortly. GBP has seen better demand recently too, despite political uncertainty still hanging over the UK. CHF has been the weakest performer across the European open on Thursday amidst stronger EUR demand and safe-haven flows being directed towards JPY instead.
Metals & Oil Rally On USD Weakness
In the metals and commodities space, gold and silver have both been stronger over the last 24 hours with a weaker USD continuing to support the metals market. Today’s CPI print has the potential to drive the rally further if USD is seen weaker in reaction to the data. Crude prices were seen higher yesterday also, despite the EIA reporting a mammoth 19 million barrel build in US crude stores. The increase, linked to refiners being slow to restore production following the recent US storms, was the largest since Feb 2021 and the third largest recorded by the EIA.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
