Trading Insights: Dip buyers emerge in front of today’s big data day
Dow 30 closes +326 points higher from previous sessions low
Key US data due at 1:30 GMT today
- US Core personal consumption expenditures (PCE) measures prices paid by consumers for goods and services without the volatility of price moves in food and energy, it's a good indicator of “Real Inflation”
- US personal income is forecasted to increase from 0.2% to 0.7% m/m, its a good indication about future inflation
- US personal spending is expected to increase from -0.2% to 1.1% m/m, it's a good indication on the strength of the economy
Today’s Economic Events
|Time: GMT+0||Country/Region||Economic Indicator||Previous||Forecast||Actual||Units|
|12:01:00 AM||Great Britain||Gfk Consumer Conf||-45||-43||-38||-|
|7:00:00 AM||Germany||GFK Consumer Climate||-33.9||-30||-30.5||-|
|7:45:00 AM||France||Consumer Sentiment||80||80||-||-|
|1:30:00 PM||US||Personal Income m/m||0.2||1||-||%|
|1:30:00 PM||US||Total PCE Price Index m/m||0.1||0.5||-||%|
|1:30:00 PM||US||Core PCE Price Index m/m||0.3||-||-||%|
|3:00:00 PM||US||New Home Sales||0.616||0.62||-||-|
Euro Stoxx 50 index
Euro Stoxx 50 index moved higher again yesterday after price bounced off the 4,211 support in a signal that technical “dip” buying is emerging; upside momentum seems to be holding, although the MACD and the RSI (daily chart) has slowed. Next key resistance is seen at 4,303 and a break above opens the prospects for a run at the November 18th 2021 highs at 4,410; downside risk seen below 4,211 with 4,100 seen as key support
USD/JPY the pair is now firmly above its 50 day moving average (bullish), the move above the 132.77 previously seen as a key resistance has now turned into a key short term support; the MACD trend following indicator indicates uptrend is in play (see chart) and the RSI momentum indicator indicates upside momentum; potential prospects for a move towards the next resistance at 136.8 provided price can remain above the 132.77 support
Dow Jones 30
Dow 30 Index risk appetite seen improving after Wednesday's FOMC meeting minutes; Dow 30 bounces +326 points higher off the key support near the 32,950s during yesterday’s US trading session in a signal that “dip” buyers are emerging around key technical retracement levels; however despite the positive bounce higher, the index from a technical point remains neutral and within a trading range; upside prospects for a further bounce towards the 33,580s remains in the very short term (5-13 days), provided the index does not fall below the 32,950 support (see daily chart).
Not investment advice. Past performance does not guarantee or predict future performance.
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