Welcome to Tuesday!
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.
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Tuesday, gold rallied because uncertainty over the latest developments in Britain’s departure from the EU backed safe haven demand and traders looked ahead for American inflation data to underpin the Fed’s pledge to remain on hold…