Nasdaq near record highs, dollar remains stronger

The Nasdaq 100 index rose notably on Tuesday and pushed toward record highs, half a percent stronger on Wednesday. Other indices were also bid, and EU bourses moved higher as the euro appears to be losing some of its earlier strength. 

The EURUSD pair has formed a large head and shoulders pattern, with the neckline at 1.2050 already broken, which implies further downside for the single currency. The potential of the formation is toward 1.1750.

Later in the day, EU CPI indices for January are due, with markets anticipating an improvement to -1.2% on a yearly basis. Interesting number, as commodities are soaring, yet the CPI remains negative. 

During the US session, the ADP employment report is expected to rise to 49,000 from -123,000 previously. Any number should be bullish for stocks. Moreover, the services ISM is forecast to decelerate slightly, from 57.7 to 56.8.

From other news, gold and silver absolutely crashed yesterday, erasing Monday’s gains and losing some more. Gold remains in a bearish trend, as we have said a couple of times already. On the other hand, oil, which tends to be one of the best inflation hedges, rose to new cycle highs and is trading at around 55 USD, last seen in January 2020.

Source: https://www.axiory.com/market-news/nasdaq-near-record-highs-dollar-remains-stronger