What you need to know on Wednesday, July 14:
The dollar approaches its monthly high against most major rivals, boosted by upwardly revised US inflation. The Consumer Price Index was upwardly revised in June to 5.4% YoY, much higher than the expected 4.9%. The core reading was also upwardly revised from 3.8% to 4.5%. Germany also published its June inflation figures, with the annual Consumer Price Index confirmed at 2.3%. The figures revived speculation about a tighter monetary policy, despite policymakers work hard on cooling down such expectations.
The EUR/USD pair reached a fresh multi-month low of 1.1780, holding nearby ahead of the Asian opening, usually a sign of further falls ahead. GBP/USD hovers around 1.3820 while AUD/USD nears this 2021 low of 0.7409.
The Canadian dollar fell despite higher oil prices. WTI moved above $75.00 a barrel amid speculation of tighter supply, as the OPEC+ can’t agree on higher output, and expectations of a further draw in US inventories.
Gold prices were quite volatile after the release of US inflation figures, but the bright metal is ending the day pretty much unchanged at around $1,808 a troy ounce.
Wall Street struggled to post some gains, with US indexes ending the day mixed around their opening levels. On the other hand, government bond yields resumed their advances, with the yield on the 10-year US Treasury note reaching 1.42%.
The focus shifts to US Federal Reserve chief Jerome Powell who will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee and will try to convince Congressmen about the need of maintaining facilities despite the economic progress. His prepared remarks have already been published, and the event will likely have a limited impact on markets.
The coronavirus Delta variant is dominant in the Northern Hemisphere and the number of new cases is on the rise in the US and Europe. Fears about it delaying the economic comeback weigh on investors’ mood.
Three reasons why Shiba Inu is one of the most bullish cryptos in the market
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD stays below 1.0900 as Q1 comes to an end
EUR/USD has lost its traction and declined below 1.0900 in the American session on Friday. Quarter-end flows seem to be allowing the US Dollar find some demand but the risk-positive market environment seems to be limiting the pair's downside ahead of the weekend.
GBP/USD trades below 1.2400, looks to post weekly gains
GBP/USD has edged lower after having tested 1.2400 earlier in the day but remains on track to end the third straight week in positive territory. The upbeat mood remains intact after soft PCE inflation data from the US, making it difficult for the US Dollar to continue to gather strength.
Gold tries to stabilize near $1,980 following earlier spike
Gold price has returned to the $1,980 area following a spike above $1,987 with the initial reaction to lower-than-expected PCE inflation figures from the US. Meanwhile, the benchmark 10-year US Treasury bond yield stays in the red near 3.5%, providing support to XAU/USD.
Will Dogecoin price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. The recent recovery above the range low looks promising and hints at an explosive move for next week.
Week ahead – Nonfarm payrolls to set the tone for US dollar
With the banking turmoil receding, market participants will turn their attention back to economic releases. The spotlight will fall on the US employment report.