New US inflation data released yesterday showed that inflation remains relatively strong, with the annualized rate rising month-on-month from 3.1% to 3.2%.
- Yesterday’s release of US CPI data showed the annualized rate rising from 3.1% to 3.4%, with Core CPI showing month-on-month growth of 0.4%, compared to the 0.3% expected. Despite the slightly bad news, US stock markets still look bullish, with the benchmark S&P 500 Index closing yesterday at a new all-time high price. The US Dollar barely moved despite the data.
- Bitcoin advanced again yesterday to make a new all-time high just above $73,000. The short-term price action looks bullish. Trend traders will be interested here on the long side.
- The price of Gold is showing initial signs of having topped out on Friday at a record high of $2195. However, these are only initial signs, and bulls are not likely to start getting out of longer-term positions yet until a deeper bearish pullback might be made.
- In the Forex market, the New Zealand Dollar has been the strongest major currency since the Tokyo open today. The Swiss Franc has been the weakest.
- In the commodities market, Cocoa futures rose strongly yesterday to reach new multi-year highs. Trend traders will be keen to be involved in this very long-running trend on the long side.
- There will be a release of UK GDP data later today, which is expected to show a month-on-month increase of 0.2%.
- Analysts in Japan are expecting sizable corporate wage rises will be agreed this week, which will likely trigger an abandonment by the Bank of Japan of its current ultra-loose monetary policy as soon as next week.
