Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Higher inflation numbers helps US dollar
Information is not investment advice
Ichimoku Kinko Hyo
AUD/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
XAG/USD: Silver continuous to stand above 50% retracement area. Silver has entered a consolidation phase
EU Market View
European stock markets are seen opening lower Wednesday, as a jump in U.S. inflation raised concerns the Federal Reserve could tighten its ultra-easy monetary policies sooner than previously expected. European stocks slipped from peaks on Wednesday, as the global mood soured on increasing concerns about inflation, while travel stocks dropped on worries about the Delta variant's spread in the continent.
The dollar edged lower in early European trade Wednesday, handing back some of the previous session’s sharp gains after a jump in U.S. inflation raised expectations of an early move by the Federal Reserve to tighten monetary policy.
British inflation jumped further above the Bank of England's target in June when it hit 2.5%, its highest since August 2018 and up from 2.1% in May, putting the focus of the BoE's plan to keep its huge stimulus programme in place.
Official data showed higher prices for food, fuel, second-hand cars, clothing and footwear all pushed inflation up last month as the economy bounced back from its lockdown slump, the Office for National Statistics said.
Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell are slated to discuss the hot U.S. housing market and the risks it could pose to the financial system at a meeting with fellow regulators on Friday.
The aim of the closed-door session: To make sure the U.S. is not vulnerable to a crisis akin to the one it suffered more than a dozen years ago, when the bursting of a property-price bubble drove top banks to the brink of insolvency and the economy into a deep recession.
EU Key Point
- AUD/NZD targets May low after RBNZ policy decisio
- Japan May final industrial production -6.5% vs -5.9% m/m preli
- NZD/USD higher after the RBNZ tilts more hawkish than was expected.
- Coronavirus - Sydney to get a 2-week lockdown extension (at least) - announcement incomin
- Singapore preliminary Q2 GDP -2.0% q/q (expected -1.8%).
- Reuters Tankan report for July, manufacturers sentiment improved, services drop.
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.