Mixed Markets Ahead of CPI and Fed – Nasdaq up 0.8%
US markets had a mixed day yesterday as investors looked ahead to today’s key CPI data print and the conclusion of the latest Fed meeting. Tech stocks pushed higher with both the Nasdaq and S&P recording all-time high closes again, the Nasdaq added 0.88% on the day followed by the S&P which gained 0.27% whereas the Dow suffered a 0.31% loss as the market was warning of more potential regional bank failures. US treasury yields took a dip after strong demand for the 10-year auction, the 10-year dropping 5.7 basis points to 4.412% and the 2-year off 4.7 basis points to 4.838%. The dollar increased slightly, adding 0.11% to the index whilst commodity prices also drifted higher, Oil prices rising with Brent up 0.4% and WTI 0.2% to $81.92 and $77.90 a barrel respectively. Gold also remained trading in familiar ranges, closing up just 0.1% on the day at $2,312 an ounce.
Dollar Poised for More Moves Today
The dollar had a relatively quiet day yesterday as currency traders braced themselves for big moves later in the trading sessions today. There are some key local data releases scheduled today in China and the UK, however, expect the reactions to these updates to be relatively short lived as traders wait for the US side of the equation later in the day. The greenback is trading near 1-month highs after stronger-than-expected jobs numbers last week in the US and if we see a double whammy of a stronger than expected CPI print and a more hawkish than hoped for Fed, then we should see some very strong moves higher for the dollar as it breaks into new ranges against a few of the other major currencies.
Huge Day for Markets Ahead
The macroeconomic calendar really kicks into action today with major economic releases scheduled in all three trading sessions. The focus in the Asian session will be firmly on China with the release of the CPI and PPI numbers due out midway through the day. On the London open, the UK will be in focus again with the release of the monthly GDP update due out early in the session. However, the big moves should come once New York opens, the initial focus will be the monthly CPI update before the market then braces for the big update at the conclusion of the Fed meeting.
