On Tuesday, July 13, here’s everything you need to know:
The market is in a generally positive mood, with the dollar moving lower and other assets appreciating ahead of the release of US inflation data. Concerns about the Delta variety have persisted, especially as cases in the United States have increased. Cryptocurrencies are still on the decline.
On Monday, stock indexes in the United States reached new highs. The 10-year Treasury yield has been steadily rising, reaching 1.37 percent early Tuesday, holding the USD/JPY above 110. The dollar, on the other hand, is losing ground against foreign currencies.
The US Consumer Price Index statistics, which are expected to show a small decline in headline inflation to 4.9 percent but an increase in Core CPI to 4 percent, are the day’s highlight. Analysts will try to figure out how much of the price increases are attributable to the reopening and which ones are long-term and require Federal Reserve action. The reduction in the price of old vehicles and lumber suggests that the CPI has peaked.
Has the US Consumer Price Index (CPI) peaked in June?
Raphael Bostic, a member of the Federal Reserve, will appear later in the day, before of Chair Jerome Powell’s crucial hearing on Wednesday. According to their colleague Thomas Barkin, the recent improvement does not justify the bank’s bond-buying program being tapered. A trigger for Barkin was a 59 percent employment-to-population ratio.
The Delta variation is generating an increase of COVID-19 instances in the United States, which have increased by 94% in the last two weeks. For the time being, authorities have decided against administering a third dose.
As European governments impose tighter limitations, the EUR/USD is staying above 1.1850. With fast increases in instances, Spain, France, Portugal, and the Netherlands stand out.
Despite concerns that Britain’s reopening on Monday may result in an increase in covid cases, the GBP/USD is trading closer to 1.39. The Financial Stability Report is published by the Bank of England.
Despite the extended of Sydney’s lockdown, the AUD/USD is staying around 0.75, benefiting from USD weakness.
Due to the failure of prices to rise, OPEC+ members are apparently not in a hurry to strike an agreement on boosting supply. The price of WTI is now hovering around $74. Gold is trading above $1,800, owing to the positive market sentiment.
Bitcoin has recovered to $33,000, but Ethereum has fallen below $2,000, indicating a mixed picture. The price of Ripple’s XRP has risen above $0.60.
More This week’s favored currency is the Canadian dollar./n
