OANDA Senior Market Analyst Craig Erlam discusses EURUSD in the aftermath of the US inflation data.
12-01-2023 16:26 GMT
by Craig Erlam
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US stocks initially rallied as inflation continues to ease and as Fed members are clearly signaling a smaller tightening pace going forward. The dollar also headed lower as a subdued inflation report should let the Fed slow their hiking pace again.
It became clear fairly quickly that stocks would not hold onto initial gains as we will likely remain being data-dependent going forward. The labor market is still hot and much of the relief we saw with energy prices appears to be going away this mon
12-01-2023 10:28 GMT
by Edward Moya
The British pound is drifting for a third straight day. In the European session, GBP/USD is trading at 1.2161, down 0.09%.
12-01-2023 07:06 GMT
by Kenneth Fisher
The Japanese yen has awoken from this week's slumber and is sharply higher on Thursday. In the European session, USD/JPY is trading at 130.96, down 1.16%.
BOJ may be planning review of policy
The BOJ has been in the headlines since the December meeting when it widened the band around its 10-year bond yield target.
12-01-2023 05:02 GMT
by Kenneth Fisher
European equity markets opened cautiously higher on Thursday, following a mixed session in Asia amid nerves around the US inflation release later in the day.
This inflation print has been the main topic of conversation all week. The jobs report last Friday changed the dynamic in the markets and ensured that not only was this CPI report going to be important but in all likelihood pivotal ahead of next month's Fed meeting.
We've gone from inflation declining but the labour market being stubbornly
12-01-2023 04:12 GMT
by Craig Erlam
Oil steadies as traders grow more optimistic
Oil prices have steadied this morning after recovering strongly on Wednesday. Enthusiasm is building in the aftermath of last week's jobs report and a positive inflation reading today could further fuel that.
12-01-2023 04:06 GMT
by Craig Erlam
Oil
Energy traders should get used to seeing oil prices head higher. Oil demand is coming back and expectations are high that China’s demand is about to skyrocket.
11-01-2023 14:57 GMT
by Edward Moya
US stocks are drifting higher as optimism remains intact that a pivotal inflation report will continue to show disinflation trends remain in place. Right now might be the calm before the inflation storm as we are not seeing major positioning ahead of this CPI report.
11-01-2023 14:54 GMT
by Edward Moya
The Japanese yen continues to have a quiet week. USD/JPY has edged up 0.20% and is trading at 132.50.
Markets await US inflation report
There is optimism in the air ahead of the US inflation report for December.
11-01-2023 11:55 GMT
by Kenneth Fisher
Buoyed by economic optimism
Investor optimism going into tomorrow's US inflation report appears to be feeding through to the oil market, with Brent and WTI both up more than 2% on the day. It will be interesting to see if they can hold onto those gains considering how they've failed to do so over the last four days.
11-01-2023 11:21 GMT
by Craig Erlam
Investors remain in an upbeat mood going into tomorrow's US inflation report, buoyed still by the December jobs report and the prospect of the economy being less squeezed by interest rates.
Fed Chair Jerome Powell may have refrained from commenting on the monetary policy outlook on Tuesday but the chances are he wouldn't have said anything investors would have liked even if he had addressed it. It's been clear from other commentaries that policymakers are sticking to the hawkish script.
Another
11-01-2023 11:16 GMT
by Craig Erlam
The euro is drifting on Wednesday, trading at 1.0730. EUR/USD has climbed about 1% this week, and Monday's high of 1.0760 is its highest level since June 22nd.
11-01-2023 07:18 GMT
by Kenneth Fisher
The Australian dollar is trading quietly on Wednesday. AUD/USD is at 0.6904, up 0.14%.
Australian CPI climbs to 7.3%
Australian inflation pushed higher in November, rising to 7.3% following a 6.9% gain in October.
11-01-2023 04:18 GMT
by Kenneth Fisher
Oil
Crude prices are higher as economic optimism grows for not just China, but also the eurozone. The oil market is digesting a global slowdown that might not be as bad as feared. Energy traders still believe that OPEC+ will do whatever is needed to keep prices supported and that includes more production cuts this quarter.
Oil seems like it wants to waver right now until we get a better handle on China’s Covid surge. As China battles an unprecedented surge in Covid cases, everyone wants to
10-01-2023 11:46 GMT
by Edward Moya
Whipsaw moves in stocks continue as investors fixate over central bank speak and as they await a pivotal inflation report later this week. US stocks edged higher as we didn’t get a steady dose of hawkish speak from Fed Chair Powell and as expectations grew for disinflation trends to continue. Wall Street appears to be turning more bullish with stocks, but that might include a rebalancing of how much weight they put into tech stocks.
Ten days into the New Year and some traders are already t
10-01-2023 11:44 GMT
by Edward Moya
The Australian dollar is in negative territory on Tuesday. In the European session, AUD/USD is trading at 0.6898, down 0.21%.
10-01-2023 09:26 GMT
by Kenneth Fisher
Demand to pick up later this year
It's been a choppy session in the oil market, where Brent is hovering around $80 and WTI $75. We've now seen three sessions on the bounce in which oil prices have rallied before ending the day well off the highs.
10-01-2023 07:01 GMT
by Craig Erlam
European stock markets are softer in early trade on Tuesday following a similar session in much of Asia as investors turn more cautious ahead of Thursday's US inflation data.
The commentary from Fed officials at the start of the week was more hawkish than what investors wanted to hear following a knockout jobs report. Considering the rhetoric in the weeks leading up to Friday, it shouldn't have come as a great surprise that policymakers are sticking to the "higher for longer" narrative.
There ha
10-01-2023 06:57 GMT
by Craig Erlam
The euro has run out of steam, after an impressive two-day rally that lifted EUR/USD by 2%. On Tuesday, the euro is unchanged at 1.0734.
There are no major releases out of Europe or the US today, which could mean a quiet day for the euro.
10-01-2023 06:05 GMT
by Kenneth Fisher
The Japanese yen continues to have a quiet week. USD/JPY is showing little movement on Tuesday, trading at 131.84.
Tokyo Core CPI hits 4.0%
Tokyo Core CPI, a key inflation indicator, was higher than expected and in December hit 4.0% for the first time since 1982.
10-01-2023 04:01 GMT
by Kenneth Fisher