Wall Street indexes are reducing much of the gains from the beginning of the session when investors took a positive view of US inflation data, which supported possibly more dovish Fed. Profit-taking pressure can be seen in the shares of Nvidia (NVDA.US), among others, which failed to sustain gains from the beginning of the session. The VIX index has also been gaining for roughly two hours.
The beneficiary of risk aversion is, of course, the dollar index, which managed to bounce from 101.5 to 102.1 in no time - helped by hawkish comments from Mary Daly, of the San Francisco Fed. Daly expressed her belief that rate hikes are needed until the Fed sees downward momentum in all measures of price pressures, and that CPI euphoria may be premature. It is possible that if the pro-dollar trend continues EURUSD will again struggle to stay above the 1.10 level.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Looking technically at the Nasdaq-based contact, the stock (US100) managed to go above the EMA100 average today. However, the gains did not last long, and sellers appeared at the resistance zone of 15415-15430 points, which was derived from previous local peaks and the upper limit of the 1:1 system.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
