Asian regions had a red sea on Tuesday as fears of a return and China’s resurgence of Covid-19 disease ended demand for the crisis. Overnight, Wall Street’s big numbers hit investors as they ran a safety net ahead of the financial data and the cash flow. In Europe, prices are expected to open lower due to the European energy shortage and growing vigilance over big economic data and earnings.
In the financial markets, the major currency has shifted its hedge funds with the index (DXY) hitting its highest level since 2002. Now, the EURUSD parity dream is very close to reality this morning. when prices hit 1.0004 for the first time since December. 2002. Looking at consumers, gold continued to be depressed and unloved as oil prices hit a drop in demand. .
The negative vibe and feeling of uncertainty among the financial markets can push money up while pulling equities down. Given the fact that markets are holding on to everything about growth, tomorrow’s US CPI release could set off fire. On the face of the data, Australian consumer sentiment fell for the eighth month of July. Business confidence, driven by global uncertainty, ups and downs, and inflation has been shattered. Germany’s ZEW financial confidence report will be published later this morning. An offensive report could add to the problems of the euro, weakening the single currency.
Regarding the US financial report
Wednesday saw the release of the U.S. inflation report with investors looking anxious to see if prices continue to rise or if we continue to rise. According to a Bloomberg poll, inflation is expected to rise to 8.8% year -on -year in June compared to 8.6% in May. If the assumptions are true, this would represent the fastest increase in retail prices from 8.9% in December 1981! Such development is likely to strengthen market bets of a higher Fed rate hike, ultimately putting the bulls in a new position.
Aside from the US inflation data, it might be wise to take a look at the weekly unemployment report on Friday. At the end of the week, there will also be a box of major releases from the latest retail sales, technology, and consumer sentiment to provide insight into the health of the U.S. economy. US.
The oil that was hit by the demand worries
Oil was seen under re-purchase pressure on Tuesday as new Covid-19 curbs in China and fears of a slowdown in the global economy weighed heavily on demand.
The global economy fell more than 1.5% this morning with a thank -you note adding to the pressure and inflation in the downtrend. Despite fears of a global decline in the ability to keep cattle on the coast, oil prices will continue to continue to be dragged down by fighting forces. On the other side of the bearish trend, there are recession fears and Covid-19 limits in China. However, the bulls are able to draw support from ongoing geopolitical crises and stabilizing market conditions. President Joe Biden is scheduled to visit Saudi Arabia this week during a trip to the Middle East.
Looking at the technologies, WTI can hit the $ 100 psychological level if the bears can pay through the $ 102 level. Brent seems to have made a new resistance at around $ 107.50 with a break below $ 105 signaling a sell -off at $ 102.
Shopping candle – gold
Gold is struggling to heal the deep wounds inflicted by last week’s abusive trade.
The precious metal has been held back by an appreciative currency and hopes over the Fed maintaining a strong position on high interest rates. Prices are currently trading at around $ 1730 as of writing, with the highest level of interest found at $ 1700. The precious metal is seen and could be held for further damage if the pending US CPI report stands or is above market expectations. If prices can break into $ 1700, the highest level of interest can be found at $ 1680.