FXTM information and reviews
OctaFX information and reviews
FXCC information and reviews
Libertex information and reviews
FxPro information and reviews
HotForex information and reviews

Market calm post-US CPI

12 August 2021 Written by Hussein Al Sayed  Chief Market Strategist at Exinity Group (Gulf & MENA) Hussein Sayed

After yesterday's slightly disappointing US inflation data release, markets are in wait-and-see mode about how the Fed addresses rising price pressures. Inflation expectations are moving higher which means the world’s most important central bank may struggle to continue arguing that they are well anchored.

The dollar is consolidating yesterday’s selloff while stock markets and bond markets have breathed a collective sigh of relief that inflation didn’t accelerate even further. Value sensitive sectors like materials, industrials and financials outperformed on the day pushing the Dow and S&P500 to fresh record high closes. European bourses had hit multi-year highs yesterday but have opened up mixed so far.

Oil rebounds

It was a volatile day in oil markets with prices moving down towards $69 and then up above $71 on various headlines. The US administration heaped pressure on OPEC and its allies to boost supply to tackle rising gasoline prices. The Biden Presidency wants to see Americans “have access to affordable and reliable energy…at the pump”. Of course interestingly, concerns over rising commodity prices are also being voiced by the Chinese authorities.

The current increase by OPEC+ agreed recently of 400k barrels per day is seemingly not enough. But given the uncertainty around the spread of the Delta variant, it seems unlikely that the Saudis and the oil-producing group will want to increase production just yet. The contradictory nature of Biden policies is also being questioned as it urges greener energy while asking foreign producers to open the taps to lower pump prices.

UK Q2 GDP in line

Hot off the press, second quarter UK GDP has just been released in line with the consensus at 4.8% q/q. Growth is expected to slow again this quarter due to the Delta variant putting the brakes on the economy. But economists hope that the UK should still return to pre-pandemic levels by the end of this year.

With the hawkish noises from the Bank of England last week contrasting heavily with the continued dovish stance of the ECB, EUR/GBP has pushed to new 18-month lows. Prices are now consolidating just below the 0.8471 level and bears expect to see more downside, especially as the ECB engineers a weaker currency. A soft weekly close may start to challenge the 2019 and 2020 lows at 0.8281 and below.  




Equity bulls jittery, dollar sinks as investors digest inflation data
Equity bulls jittery, dollar sinks as investors digest inflation data

Most Asian shares ventured into negative territory this morning while European stocks markets have opened up marginally lower open after the December U.S...

14 Jan 2022

Stock Futures Trade higher
Stock Futures Trade higher

US stock futures are trading higher as investors continue to digest economic data. This month we have seen much weaker employment numbers and other economic...

12 Jan 2022

Fed Hawks, Markets Stumble, Mixed NFP
Fed Hawks, Markets Stumble, Mixed NFP

Investors marched into the new year with a renewed sense of confidence as concerns over the Omicron variant eased. European shares hit a record high in the first session...

10 Jan 2022

Stock Futures Plunge, BTC Price Crashes
Stock Futures Plunge, BTC Price Crashes

The cryptocurrency markets also got tangled up in yesterday’s massive slump in equity markets. Bitcoin’s price is crashing and traders are wondering how low the price will go...

7 Jan 2022

Yields higher again, FED minutes in focus
Yields higher again, FED minutes in focus

Treasuries continued under pressure as yields moved up supporting USD, Equities were mixed; Financials and Automaker's (EV) rallied, US data (Jolts, & ISM Manu PMI's)

5 Jan 2022

Stock Futures Trade Lower Ahead of Fed Minutes
Stock Futures Trade Lower Ahead of Fed Minutes

US and European Futures are trading lower as traders are likely to remain on the side-lines ahead of the major economic event, the Fed Minutes, which is taking...

5 Jan 2022

Editors' Picks

XM information and reviews
FXCM information and reviews
AvaTrade information and reviews
LegacyFX information and reviews
FP Markets information and reviews
FP Markets
FreshForex information and reviews

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.