SPX 500 steadies as recession worries ease
The S&P 500 grinds higher as the US economy strives to achieve a soft landing. The Fed wants to see all avenues of data before making any decisions at their next meeting. This could lead to another opportunity for bull traders as another record high awaits. However, the optimism might not be smooth, as investors remain cautious, with lingering concerns over the banking industry’s health. 5300 is a significant ceiling, with 4900 the closest support.
EURUSD holds as ECB to keep smaller hikes
The euro maintains its bullish rally as the greenback remains pressured. With CPI data on the way this week, the pair will need a firm signal from the Fed if they begin dropping rates at their next meeting. With the Bank of England already hinting that rate cuts could happen in the summer, all eyes will be on the Fed to see if they will follow suit. Expect significant volatility if the inflation rate ticks higher, as rates will stay higher for longer. 1.0850 is the next resistance, and 1.0700 is a fresh support.
AUDUSD preparing for another test higher
The Australian dollar inches higher as the pair closes in on another test at the recent triple top. The Aussie has been standing firm thanks to encouraging data from China, with exports and imports improving last month. The Yuan and the dollar both gained as economists hoped this was the start of things to come. With the RBA holding firm on its rate decision, we will see if there are any surprises at their next meeting. 0.6650 is a crucial resistance at the previous top, and 0.6560 is the first support.
