Key takeaways Global equities pushed to fresh record highs as investor enthusiasm broadened beyond mega-cap technology stocks into small-cap industrial, energy, and infrastructure companies benefiting from the ongoing AI investment boom. Strong labour market data and rising inflation pressures in both the U.S. and Eurozone reinforced expectations of a more hawkish global monetary policy environment, The post AI Exuberance Rotates Into Small Caps Amid Sticky Inflation and Looming Central Bank Tightening appeared first on ActionForex.

Bitcoin is flashing increasingly bearish signals at a time when many traditional risk assets continue to look remarkably resilient. The cryptocurrency plunged below $70,000 this week, accelerating a decline that has already erased much of the recovery from February’s lows. The divergence with equity markets is becoming difficult to ignore. While investors continue pushing technology The post Bitcoin’s Next Stop Could Be $60k. The Bigger Risk May Be $40k. appeared first on ActionForex.

The Japanese Yen is once again approaching the intervention red line around 160 per dollar, despite growing confidence that the Bank of Japan will raise interest rates later this month. Overnight index swaps are currently pricing around an 80% probability of a June rate hike from 0.75% to 1.00%. Under normal circumstances, the prospect of The post Yen Nears 160 Again as Markets Demand More Than a Token BoJ Hike appeared first on ActionForex.

Eurozone inflation has given EUR/CAD a reason to stay bid, but perhaps not yet a reason to break much higher. The stronger-than-expected rise in core CPI to 2.5% yoy and the acceleration in services inflation to 3.5% yoy have effectively cemented expectations for a 25 basis point ECB rate hike next week. For now, that The post Stronger Eurozone Inflation Gives EUR/CAD a Floor. But Can It Break the Ceiling? appeared first on ActionForex.