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Dollar on edge ahead of inflation data – Gold, Nasdaq and Bitcoin poised to rally [Video]

Jasper Osita ACY Securities

The dollar remains under pressure as mixed US economic signals weigh on sentiment. Last week’s higher inflation reading, paired with weaker Non-Farm Payroll,s raised a red flag for the greenback, signaling possible stagflation risks and adding uncertainty ahead of tomorrow’s fresh inflation report.

Markets will be watching closely. If inflation comes in hotter than expected, it could revive expectations for a more hawkish Fed, providing the dollar with short-term relief. If inflation cools, it will likely cement the case for multiple rate cuts this year, potentially deepening the dollar’s slump and fueling further rallies in other assets.

Gold is already sustaining its bullish sequence, trading with momentum and eyeing new highs. A softer inflation print could push it firmly beyond key resistance levels.

The VIX remains subdued, reflecting a strong risk-on environment that has lifted major indices, especially the Nasdaq, which is edging closer to record highs. A cooler inflation number could keep this rally alive, while a hotter print may briefly temper risk appetite.

Bitcoin is nearing its all-time high, perfectly in line with our bullish bias. If inflation pressures ease, BTC could break into new record territory as liquidity expectations improve.

Key highlights covered

Dollar vulnerable ahead of tomorrow’s inflation release.
Hot CPI could revive USD strength; soft CPI likely accelerates sell-off.
Gold in bullish sequence, targeting fresh highs.
VIX down – risk-on tone fueling US indices.
Nasdaq leading the rally toward record levels.
Bitcoin close to ATH, supported by bullish sentiment.

Author

Jasper Osita

ACY Securities

Jasper has been in the markets since 2019 trading currencies, indices and commodities like Gold. His approach in the market is heavily accompanied by technical analysis, trading Smart Money Concepts (SMC) with fundamentals in mind.

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