The market takes breath after the long rally. What opportunities do traders have today?
Euro zone inflation drops less than expected
In June, euro zone inflation went down, following more moderate energy price leaps, but the slowdown appeared to be less than expected by financial markets and the core measure of price surge the ECB keenly watches inched up more than expected.
According to the European Union's statistics office Eurostat, consumer prices in the 19 countries, sharing the common currency, tacked on 1.3% year-on-year in June, sliding from 1.4% in May and also 1.9% in April.
However, economists surveyed by Reuters had expected a much steeper sag to 1.2%. Additionally, they also expected inflation excluding energy and unprocessed food at 1%, the same outcome as in May.
In reality, in June core inflation surged to 1.2%, according to Eurostat data.
Meanwhile, the ECB is eager to keep headline inflation below, although close to 2% target over the medium term. Moreover, the EU’s key bank has been purchasing billions of euros worth of government bonds on the secondary market for the purpose of injecting cash into the economy and spurring faster surge.
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.