Markets Next Week: US Data, Nasdaq 100, US Dollar and Gold

Market week ahead: US data, Nasdaq 100, US dollar AND bear

• A handful of high-profile US data releases could fuel volatility next week.
• Are the Nasdaq and S&P 500 in the process of ending?
• Gold and the US dollar rise.

For all data and economic events moving from the market, see THE DailyFX Calendar

Financial markets may see renewed volatility next week following some notable US economic data releases. While CB consumer confidence, durable goods and Michigan consumer confidence are likely market drivers, Wednesday’s final US Q1 GDP report and Friday’s headline US PCE release are next week’s heavy hitters. The latter has recently hovered around 2.8%, well above the Fed’s 2% target, and another unchanged print will increase pressure on the Federal Reserve to leave rates unchanged for longer.

The US Dollar continues to move higher with DXY boosted by weakness in the Euro, British Pound and Japanese Yen. This year’s streak of lows and highs remains in place and the index is closing at a recent double high around 106.60. To break above this multi-month high, the US dollar will need to move and not rely on weakness in other G7 currencies.

British Pound (GBP) latest – Sterling continues to slide after Dovish BoE turn

Japanese CPI data mixed as Yen continues steady decline

US Dollar Index Daily Chart

Gold remains in a multi-week sideways range, retreating to resistance despite a stronger US dollar. The precious metal has turned above all three simple moving averages and looks set to test $2,400/oz. next week.

Gold respects a recent trading range, but support should hold steady

Daily gold price chart

The Nasdaq 100 and S&P 500 have regularly posted new highs, powered by tech giants including Nvidia, Apple and Microsoft. These three companies alone account for approximately 26% of the market capitalization of the Nasdaq and 21% of the S&P 500. Market concentration is not new, but buyers should be aware of the risk involved when indexes are driven by a very small number of stocks. . The Nasdaq 100 and S&P500 both look very overbought (CCI indicator) as the market begins to prepare for the upcoming US earnings season.

Nasdaq 100 Daily Chart

S&P 500 Daily Chart

All charts using TradingView