Market Update January 12, 2023 By Daniel Ang

Hello Traders, here is your latest market update. Today, we have some exciting news to share with you all, so sit tight and pay attention because we're about to dive into the numbers.

Market Update January 12, 2023 By Daniel Ang

The S&P 500 closed up more than 1% while the Dollar was little changed overnight as market participants bet that tonight’s U.S. inflation data would allow the Federal Reserve to slow the pace of interest rate hikes.

The market is on the rise and it's all because of the upcoming inflation data. Traders are betting that tonight's numbers will be good enough for the Federal Reserve to take it easy on interest rate hikes. It's like that feeling you get when the teacher says there's a pop quiz but you've already studied - you're in for a pleasant surprise.

The December's CPI is expected to show annual inflation at 6.5%, down from 7.1% in November, and current expectations are for a 25-basis points rate increase at the February meeting after a 50 basis point hike in December.

The Consumer Price Index, or CPI, is what measures the change in the price level of a market basket of consumer goods and services. In layman's terms, it's a fancy way of measuring how much things cost on a regular basis. And based on the numbers, it looks like prices are going down, not up. That's great news for all of us who like to save a little extra cash in our pockets.

The Dow Jones Industrial Average rose 268.91 points, or 0.8%, to 33,973.01, the S&P 500 gained 50.36 points, or 1.28%, to 3,969.61 and the Nasdaq Composite added 189.04 points, or 1.76%, to 10,931.67.

If you're a numbers person, you'll love these figures. The Dow Jones, S&P 500, and Nasdaq are all up, and they're up pretty significantly too. It's like the stock market version of a home run, and it's an exciting time to be an investor.

While the Dollar Index was virtually unchanged, EUR/USD briefly hit a seven-month high at 1.0754 but held within a narrow range as traders avoided big moves ahead of the inflation data. USD/JPY rose to 132.45, while GBP/USD was last trading at 1.2147, down 0.07% on the day.

As for the currencies, it's a mixed bag. The Dollar index is steady, but other major currencies like the Euro and the British Pound are fluctuating. The smart money is staying on the sidelines, waiting to see what the inflation data will bring.

In crude oil futures, WTI crude settled up 3.05% at $77.41 per barrel and Brent settled at $82.67, up 3.21% on the day.

And finally, the price of oil is also on the rise. Both WTI and Brent crude settled at their highest levels since December 30. It's a sign that the global economy is improving, and that's something to be excited about.

In precious metals, gold prices held steady after touching an eight- month peak last night as speculators positioned themselves ahead of U.S. inflation data that could influence the Federal Reserve's policy path.

Gold prices are also holding steady, with speculators positioning themselves ahead of the inflation data, just like the traders.

In cryptocurrencies, Bitcoin is currently trading at $17,962, up 2.31% from last night. Ether followed BTC’s direction, trading flat at around $1,391, up almost 3.6%.*

And lastly, let's talk about cryptocurrencies. It looks like Bitcoin is on the rise again, currently trading at $17,962, with a 2.31% increase from last night. And Ether is following Bitcoin's lead, trading flat at around $1,391, with a 3.6% increase. It's an exciting time for crypto enthusiasts and investors.

Overall, today's market update shows that traders are optimistic about the upcoming inflation data, with the stock market and the price of oil on the rise. The currencies are fluctuating, but the smart money is waiting to see how the numbers pan out. And the precious metals and cryptocurrencies are also holding steady or on the rise.

As always, it's important to remember that past performance is not an indicator of future results, and that you should always do your own research and consult a financial advisor before making any investment decisions. But for now, it looks like the market is on a positive trend.

Daniel is an experienced professional in the commodity industry, with over 35 years of knowledge to offer to individuals in the trading, entrepreneurship, business, and finance sectors. He started his career in 1985 and has held roles as a gold dealer and futures trader at Standard Chartered Bank. He is also the founder of Traders Academy International. Follow him for valuable insights and information, and success in your trading endeavors.