Commodities remain under severe selling pressure as the US dollar continues to strengthen, sending the EURUSD pair to parity. As of writing, silver traded some 4% weaker ahead of the US session, dropping to two-year lows at 18.50 USD.

US inflation is not slowing

Analysts were anticipating a minor slowdown in producer prices after yesterday's CPI shock. They were mistaken. PPI increased by 11.3% year over year in June, much above the +10.8% forecast.

The monthly change came out at 1.1%, above 0.9% expected. This is the 27th straight month of monthly increases in producer prices.

The core inflation slipped from 8.5% to 8.2% yearly, exceeding the 8.1% expected.

Meanwhile, last week, 244,000 Americans submitted their first applications for jobless benefits. Since November 2021, that is the highest level. On the other hand, continuing claims slightly improved from 1.372 million to 1.331 million.

Pre-COVID highs

Silver has just dropped to its pre-covid highs near 18,40 USD, therefore, erasing most of the gains induced by the massive money printing by the Fed. The following support could be at 17.50 USD.

On the upside, silver must close above the strong resistance of 19.45 USD to stabilize in the short term. Unless there is a notable change in the global sentiment, the bear market is expected to continue, and rallies should be sold.

Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD eyes are on critical daily dynamic support

AUD/USD eyes are on critical daily dynamic support

AUD/USD bears eye a 50% mean reversion in the lower quarter of the 0.6700s. A break of the supporting trendline and subsequent test of  0.6640/50 could be a significant bearish development.

AUDUSD News

EUR/USD aims for 1.0550 despite upbeat US NFP data, Eurozone Retail Sales eyed

EUR/USD aims for 1.0550 despite upbeat US NFP data, Eurozone Retail Sales eyed

The EUR/USD pair is hovering around a fresh five-month high at 1.0545 in the early Asian session. The major currency pair is expected to extend its rally to near 1.0550 ahead amid an upbeat market mood.

EUR/USD News

Gold struggles around $1,800 ahead of ISM Services PMI data

Gold struggles around $1,800 ahead of ISM Services PMI data

Gold price is facing immense pressure in conquering the round-level resistance of $1,800.00 in the early Tokyo session. The precious metal is highly expected to display more gains ahead and may extend towards a fresh three-month high at $1,824.63.

Gold News

AVAX: Traders bet should be on Avalanche bulls triggering a 15% rally

AVAX: Traders bet should be on Avalanche bulls triggering a 15% rally

AVAX price has breached an inverse head-and-shoulders setup, hinting at a 13% upswing. AVAX price has broken out of a critical hurdle and pattern, signaling the start of a quick run-up. AVAX price action created an inverse head-and-shoulder setup.

Read more

The Yen, Payrolls, and the Oil price

The Yen, Payrolls, and the Oil price

US stocks wrapped their second straight week of gains, even if stocks slipped on Friday on the back of better-than-expected US Payrolls data.We have been amazed by the resilience in risky assets of late. This year has seen some incredible macro themes.

Read more

Majors

Cryptocurrencies

Signatures