Brent crude (UKOIL) punches higher over increased demand
Brent crude edges higher as demand looks to elevate prices as we head into 2024. Global central banks are at the same stages of their tightening cycles, aiming to rein in inflation. As US stockpiles remain steady, demand should continue to the upside, with some economists expecting another test at $100 in the next quarter. The price remains above 80.00 and could push to 85.00.
EURUSD euro back on the front foot
The Euro pulls higher as the rate gap between both sides of the Atlantic closes. With falling energy prices, spring has kicked off with a sense of relief that Europe might have dodged the recession bullet. The latest round of PMI data shows progress in the eurozone. The much talked about recession, if any, would be less damaging than predicted. The ECB show no intent to raise rates any further, much like the Fed, with a terminal rate confirmed. The pair is testing this year’s high at 1.0880, and 1.0710 is a fresh resistance.
AUDUSD retreats as optimism fades
The Australian dollar weakens as the greenback still holds firm. Retail sales surprised as figures showed an expansion out of negative territory. Salary and employment growth has remained steady, and if the labour market does progress, the RBA could think about cutting rates sooner rather than later. Inflation remained flat in January at a two-year low, helped by falling food prices, reviving hopes the Reserve Bank could bring forward interest rate cuts. Subdued risk appetite could drive the Aussie towards 0.6750, with 0.6620 as the first hurdle.
NAS 100 looks for another record high
The Nasdaq 100 remains elevated as the ripple effects of a robust earnings season lingers. With the index hitting record after record, economists were betting on a firm correction at some point. However, sentiment still favouring another move higher, will the AI bubble burst before the start of the next quarter? With the Fed not driving the index as much, inflation and peak rates are being ignored for now. Prices are heading to 18100, with 17950 as the closest resistance.
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The post The Week Ahead – Inflation Continues to Drive the Market appeared first on Orbex Forex Trading Blog.
