Wall Street rebounds amid positive data

Eren Sengezer FXStreet

U.S. stocks received a boost from strong consumer confidence data on Tuesday and closed the day in the green after dropping for eight consecutive sessions. Furthermore, the barrel of West Texas Intermediate gained 1.3% on the day, lending extra support to major US equity indices.

Forex today: improved risk sentiment across the board, GBP/USD worst performer

Consumer confidence in the United States improved to the highest level in more than sixteen years at 125.6, as the index released by the Conference Board showed. Further details of the report highlighted the optimism surrounding the labor market as the percentage of people expecting more jobs in the months ahead increased to 24.8 from 20.9. The financial sector took advantage of this optimism and .SPSY jumped 1.4%.

Libya's state-controlled National Oil Corp on Tuesday declared force majeure on crude loadings from the Sharara oilfield after the field was shut down on Monday, leading to a 20% decline in total crude output. Following the news, the WTI jumped to its weekly high at $48.74. Assisted by stronger oil prices, S&P 500 Energy Sector, .SPNY, gained 1.3%.

The Dow Jones Industrial Average added 150.52 points, or 0.73%, to 20,701.50, the S&P 500 rose 13.75 points, or 0.6%, to 2,352.00 and the Nasdaq Composite gained 34.77 points, or 0.6% to 5,875.14.

Headlines from the U.S. session

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

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