Spreadex Market Update
Dollar Drops As US CPI Seen Falling Further Last Month
Equities Cheer Weaker US Inflation
Equities markets pushed on higher still yesterday, driven by weaker US inflation data. Stock markets in the US, Europe and the UK all recorded firm gains as traders mulled the prospect of a slower pace of Fed tightening over 2023 amidst the ongoing cooling in inflation. The Nikkei bucked the trend however, with the index turning lower amidst speculation that the BOJ might be close to beginning policy normalisation.
Big US Names Reporting Today
Investors will be closely following US earnings releases today with several big names due to report. JP Morgan, Citi, Blackrock and Delta Airlines are among the key companies reporting today. Traders will be keen to see how they fared over Q4. Given the backdrop, any positive surprises are likely to push US markets higher still.
EUR Leads Gains Against USD
The decline in USD yesterday in response to a further drop in US inflation has seen EUR continue to push ahead with its current winning streak. The currency has become the key beneficiary of the reversal in fortune for the Dollar and looks poised for further gains into next week. JPY has also found decent demand today amidst the drop in domestic stock prices there. As we saw yesterday, CHF remains the weakest performer, suffering amidst the uptick in EUR.
Gold Rally Pushes on – Crude Well Bid Also
In the metals and commodities space, gold and silver are in the green today. Price action in silver has been far more constrained, however, while gold prices continue to break out to fresh highs on the year boosted by a weaker USD. Crude price continue to push higher also as the reversal off initial 2023 lows continues amidst the broader upturn in risk sentiment this week.
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