US 100 faces resistance ahead of US CPI data
Telah dikemas kini
Investors will likely turn their attention towards the US CPI data released on Wednesday. Unlike in Europe, inflation has been surprisingly stubborn in the US in the past few months, and that has been limiting the Federal Reserve’s ability to start considering cutting rates. Whilst the resilience in the economic data has been keeping US equities supported, the lack of progress in the disinflation process has been causing domestic indices to lag their international peers.
Headline inflation is expected to drop marginally to 3.4% with core inflation expected to drop to 3.6% from 3.8%. Given the recent resilience in the data, any drop month-on-month is likely going to be welcomed by traders but the fact remains that inflationary pressures continue to weaken the Fed’s ability to unwind its restrictive monetary policy, which should start to show weakness in growth at some point, a headwind for equities.
The US 100 has been building marginal gains over the past few sessions but the bullish momentum is struggling to take hold. 18,250 seems like a short-term resistance for now but even if broken above this level, buyers are likely going to encounter further selling pressures heading towards the March highs at 18,465. The RSI will need to be able to break and hold above 60 in the coming days for the bias to remain bullish. A weaker-than-expected CPI reading could be the catalyst to push the US 100 to a new high this week.
Headline inflation is expected to drop marginally to 3.4% with core inflation expected to drop to 3.6% from 3.8%. Given the recent resilience in the data, any drop month-on-month is likely going to be welcomed by traders but the fact remains that inflationary pressures continue to weaken the Fed’s ability to unwind its restrictive monetary policy, which should start to show weakness in growth at some point, a headwind for equities.
The US 100 has been building marginal gains over the past few sessions but the bullish momentum is struggling to take hold. 18,250 seems like a short-term resistance for now but even if broken above this level, buyers are likely going to encounter further selling pressures heading towards the March highs at 18,465. The RSI will need to be able to break and hold above 60 in the coming days for the bias to remain bullish. A weaker-than-expected CPI reading could be the catalyst to push the US 100 to a new high this week.
Nota
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.01% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
The information provided is not to be considered investment advice or investment research. Capital.com will not be liable for any losses from the use of the information provided.'
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.