Inflation Is in Focus Again
Oil prices are rising and Russia banned the export of its petrol. What's happening in the markets?
Forex today: USD recovered, other currencies fell
- The US dollar managed to gain a foothold. After a 3-day fall, the US dollar index turned around and closed Monday’s trading positively. On Tuesday, the Index is trading around 92.60. Traders are waiting for retail sales’ data that will be released at 15:30 MT time. If actual figures are greater than forecast ones, the greenback will get an additional boost and will move to the previous highs. However, weaker data may put pressure on the US currency.
As the US dollar managed to strengthen, other currencies lost momentum.
- The pound is continuing to trade above 200-day moving average that does not let GBP/USD to break the pivot point at 1.3540. Average Earnings Index will be out today at 11:30 MT time. If the data is greater than forecast, the GBP/USD pair will not break the support at 1.3540. Otherwise, it will go to the next support at 1.3450.
- The US dollar is continuing to appreciate against the Japanese yen. USD/JPY is near 110. As no significant data for the yen is anticipated and the US dollar is rising, there is an odd that the pair will break the resistance at 110 and will move further. Moreover, according to a Reuters poll, the BOJ is anticipated to end the quantitative easing policy slower as it still fails to reach its inflation target.
- As anticipated, RBA’s meeting minutes did not support the Australian dollar. Deputy Governor of the RBA said that a board does not see "strong case" for a near-term rate rise. Nothing new, but AUD/USD is continuing to move down. The pair is near the pivot point at 0.75. If it falls lower this level, the next support will lie at 0.7450. One issue that can support the currency is trade wars’ easing. China’s top economic official will arrive in Washington on Tuesday for a 5-day trade discussion. However, a forecast is not encouraging. According to the US ambassador to China, the US and China “still very far apart” on trade. If the negotiation does not have a progress, the Aussie will fall further. However, any clues on the trade war’s easing will pull the aussie up.
- Oil is slightly falling again. On Monday, Brent gained momentum and set a new record ($78.53), WTI was not so successful but rose too. Tuesday did not start so positive, both oil benchmarks lost some points. Brent is near $78.20, WTI is trading slightly lower $71. However, Goldman Sachs stays bullish on oil. According to the bank, the rise is based on inventories that are now well below the 5-year average and are expected to continue the fall through the year-end. The bank increased upside risks to $82.5 per barrel summer oil price target.
That is all for today. Follow markets news with us!
Similar
GBPUSD May Strengthen Resulting the Fed and The BOE Meetings
In today's market insights, we delve into Citibank's oil price predictions, the evolving competition between Huawei and Apple, the Saudi Arabia-Tesla partnership, and the upcoming rate decisions from the world's major central banks.
Latest news
Bearish Signal For The USD
XAUUSD fell below 1900 for the first time since March 2023. Meanwhile, the US dollar index gives a bearish signal. Read the full report to learn more!
Current Risks for Developed Economies
Oil prices are rising while the US government is on the verge of shutting down. How will it affect the market?
News for The Week
US stock markets started falling, while the US dollar is rising. What to expect from
