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OANDA Senior Market Analyst Craig Erlam reviews the latest market news with Jonny Hart. They discuss US inflation, the BoC rate hike and what's still to come this week.

14-07-2022 12:33 GMT by Craig Erlam

Yen tumbles to 139

The Japanese yen has been pummeled today by the US dollar. USD/JPY is currently trading at 139.22, up 1.29% on the day. Is 140 next for the yen? The US dollar is showing broad strength today, and for the yen that has meant a new 20-year low, as USD/JPY touched 139.39 earlier in the day.

14-07-2022 10:04 GMT by Kenneth Fisher

Oil falls on recession fears, gold slides

Oil tumbles as IEA revises down demand growth Oil prices are continuing to trend lower as we move towards the end of the week, with recession fears once again the driving force. The IEA alluded to economic risks in its monthly oil report, in which it downgraded demand growth this year and next by 100,000 barrels per day. The downward revision would have been larger but for the stronger rebound in developing and emerging economies led by China.

14-07-2022 09:49 GMT by Craig Erlam

The ship has sailed

Stock markets staged a surprisingly good recovery following the inflation data on Wednesday but that wasn't enough to stop them from ending the day in the red or starting today in a similar position. Recession fears have fully gripped the markets and central banks are left with little alternative but to tighten aggressively into it. The CPI data yesterday was the latest in a long list of disappointing releases from the US and the result is that it's now a coin toss between a 75 and 100 basis poi

14-07-2022 09:45 GMT by Craig Erlam

Canadian dollar slides post-BoC

The Canadian dollar has posted sharp losses on Wednesday. In the European session, USD/CAD is trading at 1.3132, up 1.18%. BoC shocks with 100bp salvo The Bank of Canada has been in an aggressive mode, but nobody was expecting the massive 100bp hike on Wednesday, the largest rate increase in 24 years.

14-07-2022 07:44 GMT by Kenneth Fisher

Aussie shrugs off superb jobs report

Australian employment sparkles It has been a week of the good and the bad/ugly from Australian releases. The employment report for June, released earlier today, improved from May and easily beat expectations.

14-07-2022 06:20 GMT by Kenneth Fisher

Oil almost unchanged, gold recovers

Oil markets remain a bastion of calm I never thought I would say oil markets and bastion of calm in one sentence, but it is 2022, and anything is possible. Despite the noise seen in other asset classes from US data and central bank moves, oil was almost unchanged overnight.

14-07-2022 05:40 GMT by Jeffrey Halley

Bad medicine is what I need

Central banks deliver large rate hikes Central banks around the world have gone full Bon Jovi handing out some monetary policy bad medicine over the past 24 hours, as the fight against inflation permeates even the most ardent fence-sitters. South Korea and New Zealand hiked by 0.50% yesterday, with Canada weighing in with a crowd-pleaser sized 1.0% hike.

14-07-2022 04:33 GMT by Jeffrey Halley

Inflation feeling hot hot hot, Fed rate path confirmed, BOC surprise, bitcoin hovers above USD 19k

Ole-ole – ole ole. Ole ole -ole ole. Me gas prices on fire – Me food bill on fire – Inflation feeling hot hot hot! Fed hawks – All around me feeling hot hot hot! When you hear the Merrymen’s hit song ‘Feeling Hot Hot Hot’, you normally think of partying somewhere tropical, but today it does the job in summing up today’s inflation report. Inflation remains scorching hot.

13-07-2022 13:14 GMT by Edward Moya

Oil remains volatile, gold claws back

Oil rebounds after CPI report Crude prices are rebounding after yesterday’s collapse as energy traders digest a hot inflation report that raises the risk that the Fed could send this economy into a recession by the end of the year. A couple of key points for energy traders are that they are still looking at a tight oil market that probably won’t see a severe drop in crude demand just yet and the likelihood this will be a severe recession are low. A wrath of economic data, monthly oil reports,

13-07-2022 13:09 GMT by Edward Moya

Crude slumps on inflation, gold recovers

Crude slides as recession risks build The US inflation data caused shockwaves throughout financial markets, with oil also sliding on the back of the release. A recession is now the primary bear case for crude given the tightness in the market and it's clear here as much as anywhere how serious the economic risk is being taken. Both Brent and WTI are now back below USD 100, down around 20% over the last month, and they may well remain below there which would have been inconceivable in mid-June.

13-07-2022 11:45 GMT by Craig Erlam

On the ropes

Equity markets are tumbling again on Wednesday as the latest batch of inflation data delivered another heavy blow to sentiment. Every month investors eagerly await the CPI report for any sign that the inflation problem is easing and they are almost always left deflated by the data. Today feels like one of the biggest blows yet and given how aggressive the Fed is already being and the increase in recession talk in recent weeks, it's a tough one to recover from. It may not prove to be the knockout

13-07-2022 11:38 GMT by Craig Erlam

Sterling pares losses after US CPI jumps

The British pound has taken investors for a ride today, as GBP/USD dropped sharply but has since recovered. In the North American session, GBP/USD is trading at 1.1856, down 0.28%.

13-07-2022 10:13 GMT by Kenneth Fisher

Canadian dollar eyes BoC, US inflation

USD/CAD is trading quietly at the 130.00 line, with a busy day ahead. The Bank of Canada holds its rate meeting and the US posts the June inflation report. Bank of Canada could deliver 75bp salvo The Bank of Canada is expected to press the pedal to the gas later today, with the markets expecting a supersize 75bp hike.

13-07-2022 07:23 GMT by Kenneth Fisher

NZ dollar yawns after Reserve Bank's hike

RBNZ delivers 50bp hike As advertised, the Reserve Bank of New Zealand raised rates by 0.50%, bringing the cash rate to 2.50%. The New Zealand dollar responded with a mere shrug, indicative of the move being priced in by the markets.

13-07-2022 06:29 GMT by Kenneth Fisher

Oil slides on inventories, gold steady

Oil slumps overnight As mentioned above, a surprisingly high build in US API crude and refined product inventories spurred a late and aggressive slump in oil prices. Clearly, the speculative market is not prepared to wear any sort of losses from bottom fishing now, and we can expect to see more of these sorts of days going forward until the recession/inflation picture becomes clearer.

13-07-2022 05:27 GMT by Jeffrey Halley

US dollar consolidates

Will US inflation shake up the greenback? After the impressive rally on Monday, the US dollar settled into a pre-US-inflation waiting game overnight, which continues today in Asia as the greenback consolidates recent gains. The dollar index closed almost unchanged at 108.15 overnight, where it remains in Asia.

13-07-2022 05:19 GMT by Jeffrey Halley

Asian markets a mix after Wall St. drops

Asian heavyweights gain on lower oil prices Asia’s northern heavyweights are higher despite a negative Wall Street session overnight, thanks to the slump in oil prices late in the New York session. Wall Street couldn’t hold onto early gains as pre-CPI nerves and recession fears sent US equities down once again.

13-07-2022 05:01 GMT by Jeffrey Halley

Big Wednesday

It may not be monster surf breaks in Hawaii or Uluwatu in Bali, but today is shaping up to be a stormy day for markets, with plenty of chances to get dumped and held under the waves for a while. We have already had two central banks in Asia raise policy rates this morning, with the Bank of Korea and Reserve Bank of New Zealand hiking by 0.50%, with a hawkish tone in their statements.

13-07-2022 04:52 GMT by Jeffrey Halley

EUR/USD - Parity

OANDA Senior Market Analyst Craig Erlam discusses EURUSD hitting parity for the first time in 20 years and what could come next.

12-07-2022 18:58 GMT by Craig Erlam

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