Will US Inflation Data Shake the Week Ahead?

Hello traders, and a warm welcome to the fresh trading week ahead. As we kick off this Monday, we look forward to an eventful period, with key economic indicators poised to shape the narrative for market participants. Notably, on Wednesday, all eyes will be on the inflation data from the US, where market consensus hints at a modest surge both monthly and annually. Given the weight of this data, traders are likely to hang on every decimal, modulating their strategies in tandem with the sentiment stemming from these numbers.

Interestingly, this Monday heralds a period of corrections, perhaps an echo of last week’s movements looking for a rebalance. Let’s delve into the specifics:

Indices: It seems the rallying cry is discernible among indices. The Dow Jones, as a case in point, is reviving its momentum, taking cues from an absolutely pivotal long-term uptrend line – a sentinel guarding the bullish stance. Concurrently, Nasdaq seems to be on a mission as it’s poised to lock horns with a significant horizontal resistance, set at 15,350 points. Over in Europe, the DAX showcases resilience, inching upward post a dramatic V-shaped reversal that colored last Friday’s session.

Forex: Shifting focus to the currency playground, today’s narrative is correction-centric. Eclipsing its peers, the Japanese Yen, Australian Dollar, and New Zealand Dollar have emerged as the standout performers. Contrarily, the US Dollar is trailing, feeling a downward pressure. This dynamic sketches a backdrop where EURUSD witnesses a bullish uptrend, setting its sights on the neckline of a triple top formation. Meanwhile, USDJPY is undergoing a correctional phase, retreating after touching new zeniths in its long-term trajectory. If we were to encapsulate the mood, it seems the initial hours or perhaps the first couple of days this week would serve as a counter-narrative to last week’s drama.

Commodities: On the commodities front, the ambiance is rather neutral, albeit with a sprinkle of bullish undertones. Precious metals seem eager to ascend, while oil maintains its robust stance, lingering tantalizingly close to its recent peaks.

Source: https://www.axiory.com/analytics/market-news/will-us-inflation-data-shake-the-week-ahead