OANDA Senior Market Analyst Craig Erlam reviews the latest market news with Jonny Hart. They discussed UK inflation, Netflix and Nord Stream 1.
20-07-2022 10:44 GMT
by Craig Erlam
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This week's impressive euro rally, which has seen EUR/USD jump by about 200 points, has taken a pause today. EUR/USD is almost unchanged at 1.0224.
ECB poised for liftoff
It's show time (finally) in Brussels, as the ECB will announce a lift-off in interest rates on Thursday.
20-07-2022 10:26 GMT
by Kenneth Fisher
The Canadian dollar has enjoyed a good run this week, rising 1.28%. USD/CAD is trading quietly at 1.2888, up 0.13% on the day.
Canada's inflation expected to accelerate
It seems that everywhere you turn, inflation is going up and up.
20-07-2022 07:38 GMT
by Kenneth Fisher
The British pound is almost unchanged today, as GBP/USD trades at the 1.2000 line.
UK inflation hits new 40-year high
UK inflation rose in June to its highest level since 1982, as the cost-of-living crisis has moved from bad to worse. Headline CPI hit 9.4% YoY, up from 9.1% in May and a notch above the consensus forecast of 9.3%.
20-07-2022 05:34 GMT
by Kenneth Fisher
Oil prices explode higher
Brent crude and WTI prices continued higher overnight as sentiment in markets swung to peak inflation once again, and concerns persisted around the resumption of Russian gas supplies. Brent crude rose 1.50% to USD 107.25 overnight, before edging lower to USD 106.40 in Asia.
20-07-2022 04:22 GMT
by Jeffrey Halley
The bear market rally looks well and truly back on track this week, thanks to one of the stranger things I have seen in 2022, Netflix losing only one million subscribers in Q2 instead of 2 million and forecasting an additional one million subscriber additions in Q3. Minus one plus one equals um, zero, the last time I looked.
20-07-2022 03:16 GMT
by Jeffrey Halley
US stocks are rallying as corporate earnings haven’t been terrible and on optimism that Russia won’t delay the restart of gas flows on Nord Stream 1 pipeline. Earnings have been coming in mixed but nothing too terrible that is unnerving investors.
19-07-2022 13:43 GMT
by Edward Moya
Oil
Crude prices tentatively breached the USD 100 level after the Bank of America fund manager survey showed global growth optimism was at an all-time low. Earlier in London, oil was declining after reports Congo was looking to bolster up its oil sector by offering 30 oil and gas exploration blocks for licensing.
19-07-2022 13:39 GMT
by Edward Moya
The US dollar remains in correction mode and the euro has jumped on the bandwagon. EUR/USD is trading at 1.0231, up 0.88%.
The euro breached the symbolic parity line late on Thursday, the first time that has happened in 20 years.
19-07-2022 11:44 GMT
by Kenneth Fisher
Stock markets are understandably choppy so far this week, as Europe posts small gains with Italy being the outlier up more than 1%.
It's shaping up to be a critical week for Europe, with Brussels nervously waiting to see whether gas flows will resume following the completed maintenance of Nord Stream 1 on Thursday. That's the same day that the central bank will be weighing up a 25 or 50 basis point rate hike to combat soaring inflation in the bloc.
19-07-2022 10:46 GMT
by Craig Erlam
Oil pares gains
It's been another volatile couple of days for oil, with Biden's seemingly unsuccessful trip to the Middle East very much stealing the spotlight. Traders continue to weigh up tight supplies against recession prospects which have brought the price back to a suddenly more reasonable USD 100 a barrel.
We could see it slip further if economic prospects continue to deteriorate, or if Saudi Arabia hints at turning on the taps faster.
19-07-2022 10:39 GMT
by Craig Erlam
The Australian dollar has surged on Tuesday. AUD/USD is trading at 0.6903 in the North American session, up 1.29%.
US dollar falls as risk appetite strengthens
The US dollar remains in a downward correction, as the safe-haven currency has lost its lustre, with risk sentiment gaining strength.
The Federal Reserve meets on July 27th and the blackout ahead of the meeting won't change the fact that this meeting is a live one, as the markets try to determine how aggressive a move the Fed has in st
19-07-2022 10:33 GMT
by Kenneth Fisher
The British pound has extended its gains on Tuesday. GBP/USD is currently trading at 1.2010, up 0.50%.
The US dollar continues to retreat across the board, as the greenback remains in a downward correction.
19-07-2022 07:21 GMT
by Kenneth Fisher
US dollar retreat continues
The New Zealand dollar is enjoying a banner day. NZD/USD has jumped 1.14% and is trading at 0.6224, its highest level in two weeks.
The US dollar continues to retreat across the board, as the greenback remains in a downward correction.
19-07-2022 04:57 GMT
by Kenneth Fisher
US dollar retreats against majors
The US dollar fell once again against the major currencies as its downward correction continued. Notably, Asia FX made very limited gains overnight, and this US dollar move seems very much contained to the major currency space.
19-07-2022 04:21 GMT
by Jeffrey Halley
Oil prices explode higher
Brent crude and WTI prices exploded higher overnight after Gazprom declared a backdate force majeure on some major European customers. That raised fears that gas flows would not return through the Nord Stream 1 pipeline to Germany at the end of the week, causing a knock-on impact on oil prices.
19-07-2022 04:17 GMT
by Jeffrey Halley
Asian markets a mixed bag
Asian equity markets are a very mixed picture today. Price action appears to be erring on the negative side after Wall Street fell overnight, with the rise in energy and commodity prices also weighing on the sentiment of the major importing countries.
19-07-2022 03:52 GMT
by Jeffrey Halley
Wall Street did another U-turn overnight, finishing lower as the dearth of tier-1 data and the pre-FOMC media blackout left the FOMO gnomes chasing their tails once again. Wall Street closed modestly lower, ostensibly because Apple said it would slow hiring, joining its other tech-giant brethren.
19-07-2022 03:39 GMT
by Jeffrey Halley
Wall Street is starting to find its footing as investor Fed tightening fears eased and after both strong banking earnings from Goldman Sachs and Bank of America. It is the blackout period for the Fed and it seems last week’s comments from Bostic and Bullard were enough to convince markets a 100 basis-point hike is not justified right now.
Bank Earnings
Shares for both Goldman Sachs and Bank of America are off to a good start after strong results and no immediate announcements on curtailing their
18-07-2022 13:35 GMT
by Edward Moya
Oil higher after Biden's trip disappoints
Crude prices are back where they belong, over the USD 100 a barrel level, after President Biden’s trip to the Mideast did not yield any oil commitments by the Saudis. Boosting oil was also a weaker dollar that stemmed from a broad rebound for risky assets.
The oil market will remain tight as the latest earnings updates reinforced how strong the US economy remains.
18-07-2022 13:29 GMT
by Edward Moya