Market Review: Seven Out Of Seven On The Dow- Forex Laggards - Mar 17 10 16:17 EDT

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Market Review: Seven Out Of Seven On The Dow- Forex Laggards

In the daily market review with TheLFB trade team, Dan Cook, Snr Market Analyst at IG Markets, looks at the impact in the forex market in trade today. Catch Dan, and TheLFB trade team on ForexTV Live.

It was the seventh day in a row for hesitant gains on the Dow. While the action has not seemed like there is overwhelming confidence in the upside, there have been gains non-the-less. The Dow gained 47.69 to close at 10733.67. The S&P picked up 6.75 to end the day at 1166.21. The NASDAQ closed at 2389.09 after an 11.08 point gain.

It was another day that did not seem to hold a lot of conviction or bias toward any direction. Prior to the market open this morning the Department of Labor announced that the Producer Price Index fell more than expected to give a reading of -0.6%. Coming the day after a Fed statement which once again contained the phrase “exceptionally low rates for an extended period” the PPI reading confirmed to traders that inflation was still something to contend with in the future and that the Fed would not be likely to touch interest rates or focus on pulling back the liquidity that was pumped into the markets one year ago.

In times like these, when inflation indicators such as the PPI or CPI remained subdued it is not uncommon to see the markets rise. With last year’s rally kicked off on unprecedented liquidity measures, as long as that liquidity remains, even if there are not new streams to feed it, stocks should be the beneficiaries. That being said, with the low volume we have seen running through the exchanges, anything can happen and it still pays to be very cautious.

Tomorrow is the CPI report and traders will get a chance to take a look at what is probably the number one indicator of inflation we have available. It will be interesting to see how this report combines with the Weekly Unemployment Claims to give the markets direction.

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