Trading the NASDAQ “Buy the Dip?” US Inflation in Focus.

Welcome to this week’s Market Blast Fundamentals.

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I’m Brad Alexander and, on behalf of Valutrades, today we will take a look at EURGBP, GBPUSD, the FTSE (UK100), and the NASDAQ (US100).

Last week’s US FOMC meeting confirmed to investors that the US Federal Reserve will probably raise Interest Rates in March.

Interest Rate rises are always bad news for the equity markets as it means a higher cost of doing business.

So, we saw Indices like the NADSAQ falling dramatically, breaking this level of support.

However, investors like to buy at a bargain and we will look at this tomorrow from the technical side.

Many indices have fallen but the FTSE 100 is doing the opposite as the UK economy is progressing and the government is not planning any more lockdowns.

In fact, we can see from the FTSE 100 weekly chart, that price action is finally back to pre-pandemic levels.

Usually, a strong FTSE 100 means a weak GBP but the opposite is true with price action reaching key levels on EURGBP and GBPUSD.

Also, watch for important economic news from London on Friday, testimony from Jerome Powell tomorrow which could affect USD and the US Indices, and US CPI data Wednesday which is the key measure of Inflation.

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