Positive market sentiment, Dollar weakness and Gold higher

Important news for the day:

• Wed, 17th 08:00 CET UK consumer price index.

• US rate cuts.

Currently the optimism that the Fed is going to cut rates increases. Economists from Wall Street state that the Central Bank is waiting too long before reducing interest rates again. Rates have been at a two- decade high, whereas Jerome Powell did not offer further insights during his recent speeches on a timing. Some input might also come from the labour market, which has not been cooling much. Today CPI data from the UK might give further insights into the stand of potential rate adjustments. On the other hand the IMF is warning that inflation has only been cooling less than expected offering further risk to global growth.

Market talk

The weakness in the Dollar continues to fuel further positive sentiment in markets. Based on the recent big rotation indices like the Dow Jones have advanced massively whereas also the Russell 2000 index has gained. It grew 12% within the last five trading sessions. This was the best performance since April 2020. The German DAX has been lagging behind but it also growing and might offer a breakout based on the weekly chart. The uptrend remains intact. Bank stocks have also resumed their upside in general, potentially supporting the current trend.

Tendencies in the markets:

• Equities positive, USD weak, BTC strong, ETH positive, oil lower, Gold strong, Silver positive, JPY sideways.