Market Update January 11, 2023 By Daniel Ang

Daily Market Update – Wednesday, January 11, 2022 By Daniel Ang

Hello Traders, here is your Daily Market Update – Wednesday, January 11, 2022 brought to us by Daniel Ang. Let's dive in and see what's been happening on Wall Street and beyond.

First up, the big news of the day is that Wall Street closed higher overnight, despite some early volatility as market participants positioned themselves ahead of the December consumer price data due out tomorrow. This is the biggest data point of the week, so it's definitely worth paying attention to. The U.S. consumer price index (CPI) is expected to show December's headline inflation at 6.5% versus 7.1% in November.

Looking at the specific numbers, the Dow Jones Industrial Average rose 186.45 points, or 0.56%, to 33,704.1, the S&P 500 gained 27.16 points, or 0.70%, to 3,919.25 and the Nasdaq Composite added 106.98 points, or 1.01%, to 10,742.63.

While the S&P finished near the day’s session high, it was still well below Monday's intraday high, which had been its highest level since mid-December. This could be due to signs of slowing wage inflation from last Friday’s December U.S. jobs, which provided further reassurance that inflation has peaked, potentially giving the Fed leeway to slow its interest rate hikes.

But before you get too excited, market participants were anxious ahead of an appearance by Fed Chair Jerome Powell last night where he basically avoided speaking about rate hikes in a speech in Sweden.

Moving on to the currency market, the U.S. Dollar was little changed versus the major currencies, hovering close to its weakest level in seven months. Despite this, USD/JPY rose 0.26% at 132.21 even after data showed a faster pick-up in Japanese inflation that could prompt the Bank of Japan to tighten monetary policy more quickly.

Crude oil prices were also on the rise, with the U.S. government forecasting record global petroleum consumption next year and as the Dollar hovered at seven-month lows. WTI crude settled up 0.66% at $75.12 per barrel and Brent finished at $80.10, up 0.56% on the day.

In precious metals, spot gold added 0.3% to $1,877.01/oz. COMEX gold futures gained 0.29% to $1,878.10/oz.

And finally, let's talk about Bitcoin (BTC) and other cryptocurrencies. BTC held steady after the speech by Federal Reserve Chairman Jerome Powell yesterday. BTC was 1.3% higher on the day at $17,430 - a three-week high. Ether (ETH) rose nearly 1.2% to $1,336.80. Continued Dollar weakness will likely bode well for Bitcoin, helping it build on its recent bullish breakout above its 50-day simple moving average (MA). Bitcoin has seen upside follow-through since breaking out above its 50-day MA late last week on improved short-term momentum. The short-term breakout put the next resistance near $18,400.

One cryptocurrency to keep an eye on is Cardano, it was the biggest loser falling 3.28% to $0.3152 in Asia, after gaining 24.53% in the past seven days of trade. It is currently trading at $0.3227. Binance Coin (BNB) too fell 1.32% to $274 following reports that the U.S. Justice Department is intensifying its probe into Binance Global, the token’s

With over 35 years of experience in the commodity field, Daniel has a wealth of knowledge to share with traders, entrepreneurs, businessmen, and finance enthusiasts alike. He began his career in 1985 after being introduced to the field by a classmate and has since held positions as a gold dealer and futures trader at Standard Chartered Bank. He even founded Traders Academy International. Be sure to check in for valuable insights from Daniel and the rest of our team, and we wish you all the best in your trading endeavors.