Nasdaq, gold step in bearish consolidation zone, USD gains on heated Fed bets | MarketTalk | Swissquote

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The week starts on a cautious note, as the Federal Reserve (Fed) rate hike expectations intensify the selloff in global stocks and bonds, while pushing the US dollar higher against most majors.
Friday’s PCE data showed that not only inflation didn’t slow in January, but headline figure ticked higher to 5.4% from 5.3% printed a month earlier, and core inflation ticked higher to 4.7% from 4.6% printed a month earlier. The latter fueled the Fed hike expectations, because a slower-than-expected easing in inflation is one thing, but rebound in inflation is another thing.
As a result, the US yields keep pushing higher, and equities lower.
In the FX, it becomes increasingly clear that we will see a pause in the USD downside correction.
The EURUSD could further fall to and below 1.05, and renewed euro softness could weigh on European equities.
In commodities, rising US yields and the stronger US dollar hint at further decline in gold prices, as well, while crude oil continues struggling.
In Europe, Britain’s Rishi Sunak and EU’s Ursula von der Leyen will meet today to finalize the Northern Ireland drama.
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