Is the dragon finally waking up? [Video]
![Is the dragon finally waking up? [Video]](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/MoneyEURUSD_3_XtraLarge.jpg)
The week starts with the soothing news that the Chinese traveled and spent more than they did in the same period of 2019. As such, the Chinese stock markets return from the CNY break on a cheery note; the CSI 300 index in the positive, after the S&P500 and Nasdaq closed the session in the red after Friday’s hotter-than-expected inflation report.
The US and Canada are off today but the week will gather pace with big US retail and Nvidia earnings from Tuesday! Investors believe that the Nvidia earnings could act as a make-or-break moment for the technology rally, as the S&P500 hovers around deeply overbought market conditions as a result of an impressive AI-boosted rally (and dovish Fed expectations that are also coming tumbling down!).
Interestingly, despite last week’s inflation disappointment and tumbling Fed cut expectations, the US dollar index’s failure to gather positive momentum is weighing on the bullish sentiment this morning, the index is testing the 100-DMA to the downside. The EURUSD tests its own 100-DMA resistance to the upside, as the USDJPY trades near 150 at the start of the week.
Author
Ipek Ozkardeskaya
Swissquote Bank Ltd
Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.
