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The Week Ahead – More Record Highs

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The Nasdaq100 hits another record high
The Nasdaq100 : Another Record High

The Nasdaq100, as well as the Dow and S&P, finished at their highest ever levels. With signs of slowing inflation, the Fed’s next signal could drive the index even more, should they begin cutting rates more than once this year. With fundamentals being the main driving factor for the Nasdaq, a series of higher highs could ensue. This would further reinforce the index as it rises towards 19000, with 18250 as a fresh support.

GBPUSD jumps as inflation in focus
GBPUSD: Focus on Inflation

Since the US CPI data was released, cable has been a top performer in recent sessions after jumping over 100 pips. As the greenback falters across the board, its main competitors have capitalised. With this week’s inflation data set to determine the path of the pound, another drop towards 3% could signal the Bank of England to begin cutting rates sooner rather than later. A soft CPI could cause a correction below 1.2500. Otherwise, Sterling could bounce towards 1.2800.

XAUUSD retreats as yields climb
XAUUSD: Gold Retreats amid Climbing Yields

Gold jumped to the highest price over three weeks after sticky inflation and weak retail sales. This could reinforce expectations that the Fed will begin its rate cuts this year. With stagnated retail sales last month, indicating high borrowing costs and mounting debt, could weigh heavy on an already fragile economy. With geo-political tensions still simmering, the yellow metal could begin testing record highs soon. 2320 is the first support, and 2400 is a new peak.

 

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