US stocks soared yesterday after the latest US inflation numbers. The Dow Jones Industrial Average rose by 450 points and reached an all-time high of $32,297. That was the fifth time it has closed above $32,000 this year. Data by the Bureau of Labor Statistics showed that US consumer prices rose by 1.7% in February, in line with expectations. This increase helped assuage concerns of runaway inflation as the economy recovers. Still, there are risks of higher inflation as the US rolls-out a new $1.9 trillion stimulus package.
The euro rose today as the market waited for the latest European Central Bank (ECB) decision that will come out later today. The bank is expected to leave the deposit facility rate unchanged at -0.50% and the marginal lending facility at 0.25%. Also, it will leave the target of its quantitative easing policy unchanged as it continues to support the economy. Still, traders will focus on the ECB press conference, where Christine Lagarde will answer questions about the recent trends in the bond market.
The price of crude oil rose after the US released the official inventory numbers. According to the EIA, inventories increased by more than 13.7 million barrels last week. This was the second consecutive week that the number of barrels has increased by more than 10 million. Analysts were waiting for the inventories to come in at about 816,000 barrels. The price is also rising after the House of Representatives voted in favour of Joe Biden’s stimulus package.
XTI/USD
The West Texas Intermediate (WTI) price rebounded after falling back to $63 on Tuesday. On the hourly chart, the price has risen from below the 50% Fibonacci retracement level to above 38.2% retracement. It has also formed an inverted head and shoulders pattern where the lowest point is at $63. Also, it has moved above the 14-day double exponential moving average. Therefore, there is a possibility the price will keep rising as bulls target the next key resistance at 65.87.
EUR/USD
The EUR/USD rebounded from this week’s low of 1.1835. It rose to 1.1930 after mixed US inflation numbers. On the hourly chart, the pair has already moved above the important resistance level at 1.1816. It is also slightly above the variable index dynamic average while the average directional index (ADX) has declined a bit. Also, the MACD has moved above the neutral level. Therefore, the pair may continue rising as bulls target the next key resistance level at 1.2000.
US30
The Dow Jones Industrial Average soared yesterday after mixed inflation numbers. On the hourly chart, the index has moved above the 25-period and 15-period exponential moving averages (EMA). The Relative Strength Index (RSI) and the momentum indicator have also continued to rise. The index will likely keep rising as bulls target the next key resistance at $32,500.
