Stubborn inflation

Another miserable day for European equity markets as the prospect of recession becomes ever more real.

US markets aren’t faring any better after the jobless claims data that showed the labour market is still performing remarkably well despite all of the challenges the economy faces. While that would ordinarily be celebrated, on this occasion that resilience could translate to stubborn inflation and more rate hikes.

Focus will now shift to inflation, income and spending figures tomorrow. Another batch of stronger data could tip investors over the edge given how fragile sentiment already is. It will be interesting to see how they react to any positive surprise (lower inflation, weaker income and spending) considering how burned they were by the July CPI data.

Bitcoin struggling at $20,000 again

Another volatile session in bitcoin which is trading more than 1% lower on the day after failing just shy of $20,000 earlier in the day. The rally at the start of the week will have gotten some excited but it couldn’t hold onto gains and now it’s struggling at that psychological threshold once more. A recovery in risk appetite may give it the boost it needs but that may be hard to come by in this environment.

For a look at all of today’s economic events, check out our economic calendar:

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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