(MENAFN– Daily Forex)
- The dow jones Industrial Average advanced its recent trading on intraday levels, to achieve gains for the second day in a row by 0.80%, to add about 268.91 new levels to the index.
- It settled at the end of trading at the level of 33,973.02, after rising by 0.56% during Tuesday’s trading.
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The index’s rise comes as traders await looming inflation data due later in the day, as economists expect the December inflation report to show that headline inflation was unchanged from the previous month, or 6.5% on a monthly basis.
A core price measure that excludes volatile food and fuel costs is expected to have increased 0.3% from November or 5.7% on a yearly basis.
Investors will be looking for signs of a slowdown in the pace of price increases. Such moderation will open the door for the Federal Reserve to drive a very hawkish interest rate policy. However, if inflation remains stubbornly high, Wall Street will worry that the Fed will need to stick to its tough policy for longer than expected.
Meanwhile, Boston Fed President Susan Collins said on Wednesday that she is leaning toward a quarter-point increase in interest rates at the next central bank’s next two-day meeting, which begins later this month and extends into February, although she She said she is still ‘very data-driven’.
There will be a slew of Fed members commenting on Thursday in conjunction with the CPI numbers, including Fed Chair Phil Patrick Harker, St. Louis Fed Chair James Bullard, and Richmond Fed President Tom Barkin.Dow Jones Technical Analysis
Technically, the index rises with continuous support from its trading above its simple moving average for the previous 50-day period, with positive signals in the relative strength indicators. This happened despite reaching highly overbought areas, and in light of its impact on the breach of a bearish corrective slope line earlier in the short term, as it is shown in the attached chart for a period of time (daily).
Therefore, our expectations are still for the index to rise further during its upcoming trading, to target the important and nearby 34,281.36 resistance level , in preparation for attacking it.
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