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.
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.