XAUUSD hitting higher highs
Gold steadied after its ongoing rally was interrupted by a hot CPI report, impacting the Gold price chart. This continues to fuel concerns that the Fed might not even cut its interest rate this year. The yellow metal fell almost $30 on the news release, however, managed to make up the lost ground later in the session. In that respect, demand for the safe haven metal stays firm, with the price looking to revisit its record high above 2360. 2300 is the first support in case of a pullback.
USDCAD continues the rally
The Canadian dollar fell further as the Bank of Canada held its key interest rate at 5%. The central bank left its policy untouched in its latest meeting but struck a hawkish tone. On top of the latest reading, US CPI data came in hotter than expected, ticking higher YoY. It makes it even less likely the Fed will bring down interest rates soon, leading to a rally with the greenback. Meanwhile, the loonie might continue to benefit from higher oil prices. The pair is heading to 1.3700, with 1.3550 as the first support.
SPX 500 rallies as earnings season begins
The S&P 500 was shaken by the recent CPI data as US stocks fell, with inflation moving away from the 2% target. The market is now pricing in just two rate cuts this year, down from three a few weeks ago. As earnings season goes full swing, big financial institutions will report their results this week. The index is attempting another record high above 5300, with 5120 and 4990 being the closest support.
