Forex Trading Library

The Week Ahead – S&P Hits Another Record High

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UKOIL (Brent crude) on the road to recovery
UKOIL Chart: Brent crude shows recovery trends with key support at 81.00 and resistance at 83.50.

Brent crude continues to push the boundaries of recovery as it aims to recapture the 84.00 level. The recent gains came as economists see summer fuel demand pushing the market in the coming months. However, with OPEC announcing to increase production from October, we could see a turnaround in fortunes for bull traders. With ongoing geopolitical tensions, traders will be wary of trading the black gold all-in. 81.00 is critical support, and 83.50 is the first resistance.

GBPUSD cable awaits CPI data

GBPUSD Chart: GBPUSD bounces from a double top, awaiting CPI data to guide next moves.

Cable bounced away from its recent double top as the Fed hints at holding its cash rate for longer. The recent rise in unemployment has not helped the pound, with job growth continuing to slow. This will be a relief for the Bank of England, which needs to see a weak labour market to begin lowering rates. Next up this week is the CPI data, which is expected to fall below 2% year-on-year. 1.2700 is the closest support, with 1.2850 at the recent top.

SPX 500 advances on Fed progress
SPX 500 Chart: SPX 500 hits a new record high as Fed signals easing price pressures.

The S&P 500 jumped to another record close as the Fed pointed to easing price pressure across the nation. As expected, the Fed kept its rate unchanged and indicated progressive movement with inflation, even though it remains a long way off the 2% target. With only one rate cut expected this year, this might not be the last record high we see on the indexes across the board. 5500 is the next target to the upside, with 5250 the first support.

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