SPX (500) Index seeking another record
The SPX (500) Index remains choppy as earnings season is in full swing. The macroenvironment shows decent economic data coupled with hawkish Fed comments, seemingly keeping the index propelled. All eyes will be on the upcoming FOMC minutes to see if the Fed will wait until the end of the year to look at rate cutting again. The index is pushing once again to record highs after meeting heavy resistance last time around. With 6100 being the psychological target to break, 5800 become the firm support.
EURUSD holding onto gains
The euro looks to hold on to recent gains made as US inflation creeps higher. With Donald Trump expected to announce new tariffs, a further potential trade war could ensue. Higher inflation could lead to a stronger dollar for now, but as the Fed looks likely to ignore any rate cuts until later this year, all eyes will be on the new President’s agenda. It could be a long year ahead for the greenback. The pair is to test 1.0500 with 1.0250, which is fresh support at the recent bottom.
USOIL remains consolidated
WTI depreciated following discussions between Putin and Trump to initiate negotiations aimed at ending the Ukraine/Russia conflict. The dollar-denominated Oil faces further challenges as rising inflation in America reinforces the odds that the Fed could even hike rates this year. The price is hovering between 70.00 and 74.00, with a break at the latter being a possible shift in momentum towards 78.00.
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