Oil jumped to March high, stocks are heading to record highs, while the US dollar is on the back foot.
Market updates on July 12
Key events ahead:
US PPI - 15:30 MT
Higher figures will be positive for the USD.
- Yesterday, the levels of US CPI and core CPI outperformed the expectations. The headline indicator increased by 0.1%, while its core level advanced by 0.3%. Positive figures brought short-term optimism to the USD bulls, however, the dovish Fed Chair continued to affect the greenback the most. EUR/USD has bounced from the 1.1280 level (38.2% Fibo) to the support at 1.1244 but managed to recover with the rise above the 200-period SMA. Bulls need to push the pair above the 1.1280 level to the next resistance at 1.1290 to confirm their strength. From the downside, pay attention to the 1.1257 and 1.1244 levels.
- Gold fell to the 100-period SMA on the release. If the USD continues to weaken today, the yellow metal will test the $1,415 level. If it’s broken, the further rise will be limited by the $1,424 level. On the other hand, if the USD gets stronger, the yellow metal may fall to the $1,402 and lower, to the $1,391-1,385 levels.
News geeks get ready for the chain of US reports, which starts at 15:30 MT time on November 25!
The US dollar surged yesterday after the positive US data, but turned down today. Jump in to get a market wrap!