Wall Street rises and Oil rallies

Chris Beauchamp IG

Some of last week's rebound has carried over into the new week, though investors remain cautious ahead of US CPI on Wednesday, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stocks mixed in afternoon trading

“It has been a slow start to the week for markets, in what has been a remarkable sea-change compared to last week’s frenetic movements. The August lull is firmly upon us, and while equities on Wall Street are continuing to claw back gains a cautious atmosphere prevails ahead of Wednesday’s inflation readings for the US and UK. Things might have calmed down but the nervousness hasn’t gone away entirely.”

Oil prices rise on Mid-East tensions

Oil has surged to its highest level in over a week as expectations of an Iranian strike on Israel rise once more. The risk had appeared to recede last week, or at least had been pushed back, but an attack is on the cards once more, powering oil’s move higher from last week’s two-month low.”

Author

Chris Beauchamp

EUR/USD struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

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Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.