Last week's soft CPI report from the US, reinforced optimism for a less aggressive stance by the Federal Reserve, with CME's FedWatch Tool pricing-in further slowdown in the pace of tightening and a 25 basis points rate hike at the next meeting.
The US central bank has maintained a very hawkish stance, but so far has not pushed against those tame expectations. The communication blackout period kicks-in at the end of the current week, so investors will be closely monitoring a series of speeches by policy makers over the coming days.
On the earnings calendar, Netflix stands out this week, reporting its Q4 results on Thursday. This has been a tough year forthe streaming giant, and rival Disney surpassed it in terms of subscribers, while its stock slumped.
On the technical front, NAS100 benefits from hopes of a Fed pivot and tries to move beyond the daily Ichimoku Cloud and take out 11,859, although it may be early to talk for further advance towards and beyond 12,224.
On the other hand, NAS100 shows some indecision this and a return back towards the EMA200 (11,300-11,267) would not be suppressing. However, a significant sentiment shift would be needed for daily closes below this level that would pause the upside bias and bring 11,000 in the spotlight.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
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