• US equities continue to advance as labor market data shows signs of softening.
  • DXY tests key resistance ahead of US PCE and jobless claims data.
  • General rise in commodities a focus point for months ahead.


The S&P 500 futures are edging higher, as the US labor market data continues to show signs of weakness. This is likely to keep a lid on further interest rate hikes from the Federal Reserve. Thus likely to see more positive appetite for risk a key price to watch is 4525 on the SP500

The focus today will be on the US jobless claims and PCE data. The PCE is the Fed’s preferred measure of inflation, so markets will be paying close attention to this data. If the PCE comes in higher than expected, it could support the case for further rate hikes.

The general rise in commodities is also a focus point for markets. This is due to a number of factors, including the war in Ukraine and supply chain disruptions. The rise in commodities could continue to put upward pressure on inflation.

Forex market

The US dollar is trading higher against most major currencies. The euro is the weakest currency, as it is weighed down by concerns about the European economy.

The Japanese yen is the strongest currency, as it is seen as a safe haven investment.

Trading opportunities

Our preferred trade for today is to short the US dollar on a miss in the PCE data. We would also look to buy EUR/USD and AUD/USD on a surprise beat in the data.

Another trading opportunity to watch is the Chinese Caixin PMIs. If the PMIs come in stronger than expected, it could support the Chinese yuan.


The markets are likely to remain volatile in the coming days, as investors digest the latest economic data. We will continue to monitor the situation and provide updates as needed.

This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. INFINOX is not authorised to provide investment advice. No opinion given in the material constitutes a recommendation by INFINOX or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

All trading carries risk.