US stocks closed at record highs ahead of key corporate earnings. The Dow Jones and Nasdaq 100 indices rose by 126 and 30 points, respectively. They also rallied in the futures market today. The top companies that will publish their results today are Goldman Sachs, JP Morgan, PepsiCo, and Fastenal. Later this week, firms like eBay, Wells Fargo, and Blackrock will publish their results. Stocks also rose as the ongoing wave of corporate consolidation continued. Media reports said that Broadcom, a leading chip company, was in talks to acquire SAS Institute for as much as $20 billion.
The US dollar was little changed during the American and Asian sessions as investors waited for the latest inflation data. Economists expect the data to show that the headline CPI rose by 4.9% in June after rising by 5.0% in May. The core CPI, which excludes food and energy, is expected to increase from 3.8% to 4.0%. The inflation data comes at a time when analysts are concerned about future prices. They point to a slow shift in forces that helped the Fed keep inflation low like globalization, e-commerce, and demographics. They say that some of these forces are reversing, which could mean higher-than-average inflation in the future.
The economic calendar will have some key events today. In Europe, the German statistics agency will publish the latest consumer price index (CPI) data. Economists expect these numbers to show that prices rose by 2.3% in June after rising by 2.5% the previous month. Switzerland will also publish the latest producer price index (PPI) data while Turkey will release the latest retail sales and industrial production data. The numbers come a day ahead of the latest CBRT interest rate decision.
EURUSD
The EURUSD pair was little changed at the current level of 1.1863. On the four-hour chart, the pair has consolidated along the 25-day moving average while the MACD has moved above the neutral level. It has also moved above the upper line of the descending channel. The pair seems to be forming a small bullish flag pattern. Therefore, it will likely break out higher ahead or after the latest US inflation data.
USDCHF
The USDCHF pair was little changed during the Asian session. It is trading at 0.9145., which is substantially lower than this month’s high of 0.9266. On the two-hour chart, it has formed a bearish flag pattern that is shown in red. It has also moved below the important support at 0.9192 and the 25-day moving average. The RSI has moved above the oversold line. Therefore, the pair will likely resume the downward trend as bears target the next key support at 0.9100.
NDX100
The Nasdaq 100 index closed at a record high ahead of key bank earnings. It is trading at $14,888 in the futures market. The pair has moved above the short and medium-term moving averages (MA). The MACD has moved above the neutral line while the RSI is approaching the overbought level. Therefore, the pair will likely keep rising as bulls target the next key resistance at 15,000.
