A Market of Smoke and Mirrors [Video]

US CPIs Edge Higher

Yesterday's US CPI figures resulted in a surprise as they ticked up. Some say it has to do with the imposed tariffs by the US administration as companies are passing higher prices to consumers. While many CEOs have said on CNBC that they are increasing prices, the White House is firm about it and we heard Navarro state yesterday that there is NO inflation and that CEOs are NOT telling the truth...So who are we supposed to believe?

Meanwhile, Donald Trump has tweeted that the Dow Jones reached 27k for the first time ever (even though less than 1% of the lower 50% of the US population actually holds any relevant stocks from which they could experience the benefit of this uptrend) and blamed China for letting the US down and not buying agricultural products from the great US farmers which feel the impact heavily and happen to not be among the "rich" people who hold stocks. 

EU Bourses Wobble

European stocks traded mixed on Friday morning following a negative close yesterday after a call from the International Monetary Fund (IMF) warned that the eurozone economy faces rising risks from trade tensions, Brexit and Italy. Auto stocks struggled on the back of a profit warning from German carmaker Daimler. In other news, shares of Thomas Cook Group (TCG) plummeted as much as 41% on news that the travel company is in talks over a £750m rescue package that would give its Chinese investor Fosun a majority stake in the company’s tour operator business.

Forex Preview: USD Slides

The USD is fading out once again coming back lower again ignoring the uptick in the CPI. Fed Chair Jerome Powell’s dovish statements this week hurt the dollar, with USD traders now focusing on the US/China trade talk developments for more direction on the greenback. Elsewhere, the EUR is on its 2nd consecutive daily attempt to push beyond the 1.1270 upwards and close above it. Watch for the US producer prices today on an otherwise rather uneventful calendar.

Gold Steadies, Oil Prices rise

Gold prices steadied this morning and are on track to post a weekly gain, on global growth jitters and prospects of an interest rate cut by the U.S. Federal Reserve. XAU/USD also reacted mildly to the CPI out of the US and is holding at elevated levels eyeing further possible increases. Oil prices rose today, hovering near six-week highs, as U.S. oil producers in the Gulf of Mexico cut more than half their output in the face of a tropical storm and on simmering Middle East tensions. Crude is holding at the $60,80 level and might be in for a break to the upside if the USD weakness prevails also since 53% of the US Gulf oil production was shut down due to a storm which should also impact oil stocks in the coming week and help oil prices further up.

Bitcoin Breaks 11.5K

Bitcoin was heavily criticized by Donald Trump via Twitter yesterday dropping back to 11k but already recovering this morning fighting to sustain itself above the so critical 11.5k level. The overall bullish outlook remains in place.