14.09.2021: How US stocks and USD trading after inflation data (S&P500, DXY, USD/CAD, BTC/USD)

On Monday, the S&P 500 closed with a 0.2% gain. The Dow Jones showed the strongest performance, having grown 0.8%. The Nasdaq closed flat. All key stock indices opened in the red this trading week. Later on, as soon as the S&P 500 approached a 50-day moving average, all of them made an expected bounce. Hence, the US stock market is still going through a downward correction. One week is left before the US Fed’s policy meeting.
Today the market got to know crucial macroeconomic data: the US CPI for August. In annual terms, consumer inflation in the US edged down to 5.3% last month following a 5.4% increase in July and June, the fastest growth in 13 years. The actual data came in line with expectations.
As a result, the S&P 500 climbed to 4,482. The index is expected to trade in the corridor of 4,430 to 4,490. The highlight of the day is certainly the inflation report from the US. The CPI for August should have confirmed or refuted the Fed’s viewpoint on whether consumer inflation would slow down its pace after a spike in April – July. Actually, the market received evidence that inflation logged a downtick.
The CPI data has already made an impact on the currency market. In light of the news, the US dollar index reversed downwards, having missed resistance. Currently, the index is trading at near 92.40 with prospects of a decline to 92.30.
Meanwhile, the USD/CAD pair is trading quietly. The loonie has not responded yet to a new bullish wave in oil prices which is carrying on despite a correction in the US stock market. When investors clear up trading sentiment on the US dollar, the USD/CAD pair will change in turn.
At the moment, the currency pair is trading at about 1.2650. It is likely to hold in the corridor between 1.2580 and 1.2750.
According to the chart, Bitcoin has been trapped inside a tight trading range since September 7. While trading sideways, assets are accumulating momentum for a further breakout.
This is what is going on with Bitcoin. Meanwhile, key technical indicators are generating signals of the bullish divergence. In this case, the cryptocurrency will encounter resistance at 47,850 and 49,000 dollars. This is the most feasible forecast for the flagship cryptocurrency.
To sum up, the inflation data released today are of major importance as the Federal Reserve views consumer inflation as the barometer of economic health. On September 22, the central bank is widely expected to announce a shift from its ultra-accommodative policy towards neutral. Lately, two Fed’s policymakers found themselves at the center of a scandal. The two presidents of the Federal Reserve Bank in Dallas and Boston were reported to be large market players on Wall Street. They executed trades worth more than 18 million dollars, making decisions that have a direct impact on market trends. This is a clear conflict of interests. Oddly enough, the executive position in the US central bank does not ban a policymaker from trading in the stock market. The disclosed top executives, Robert Kaplan and Eric Rosengren, have already pledged to sell their shares and not to make any deals during their presidency in the regional central banks.

00:00 US Indices
00:35 US CPI
01:00 S&P500
01:31 DXY
01:48 USD/CAD
02:14 Bitcoin
02:55 Resume

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