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Forex Today: NASDAQ 100 Index Approaching Record High

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked with...

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The NASDAQ 100 traded just 2 points lower than its record high from last February, suggesting new all-time highs will be made soon by the Index.

  1. Stock markets are looking generally bullish following yesterday's surprise announcement of a ceasefire in the Israel / Iran war, which some are calling "The 12 Day War". The bullishness is especially notable in the US tech sector, with the NASDAQ 100 Index rising strongly yesterday, then trading off-hours to within two points of its all-time high. Trend and momentum traders will be interested in being long of the NASDAQ 100 and S&P 500 indices right now, with the latter index also within sight of its record high.
  2. US Federal Reserve Chair Jerome Powell testified before the House of Representatives yesterday on his monetary policy "...we are well positioned to wait..." (on rate hikes). This is a minor hawkish tilt, but it seem to have had little effect on the US Dollar's price.
  3. Australian CPI (inflation) data released a few hours ago came in lower than expected, falling to 2.1% while a rate of 2.3% was expected, the lowest rate seen in over three years. This increases the chances of an earlier rate cut by the Reserve Bank of Australia.
  4. The Bank of Japan is hinting at a more aggressive pace of tightening, mostly meaning rate hikes. Governor Tamura stated that he sees inflation as stronger than thought and is optimistic about the impact of new US tariffs, so he is prepared to hike accordingly if it becomes appropriate. This seems to have halted the recent firm decline in the Japanese Yen, giving the currency a bid in recent hours.
  5. WTI Crude Oil fell sharply again yesterday but seems to have stabilized near $65 per barrel.
  6. Gold is looking weak, suggesting it was attracting inflow as a safe haven, which investors are less in need of now.
  7. The Forex market is showing increased price movement and volatility. Since the Tokyo open, the strongest major currency has been the New Zealand Dollar, while the weakest has been the Japanese Yen. The EUR/USD currency pair has risen in line with its bullish long-term trend, reaching a new 3.5 year high above $1.1600, so trend traders will want to be long here - this currency pair has a great record of respecting its long-term trends.
  8. Canadian CPI (inflation data released yesterday was just a fraction higher than expected, showing a month-on-month increase of 0.6% while 0.5% was the expected rate.
  9. After the US markets open, Fed Chair Jerome Powell will be testifying before the Senate about the semiannual Monetary Policy Report.

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

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