Dear clients,
A closely watched US inflation report could help address one of the most pressing questions among traders: whether the market has set the short-term path for interest rates correctly. Belief in rate cuts has driven bond yields down, supporting giant tech stocks and growth stocks that have an impact on broad stock indices.
What you can expect this month, our expert says:
Leading indicators point to declining inflation, which is negative for the dollar and positive for equity markets as the US Federal Reserve may stop raising interest rates. On Wednesday, consider buying AUDUSD, #NQ100, #SP500 and selling USDCAD, USDZAR.
Of particular interest right now is not only the dollar — trade oil and gas without swaps!
