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Mid-Market Update: Inflation not ready to peak, Record low for Consumer Sentiment

US stocks tumbled after a hot inflation report removed any chance for the Fed to pause tightening in September. Inflation hit a fresh 40-year high at 8.6%, much hotter than the highest estimate, and probably still not the peak. CPI readings are skyrocketing and unfortunately that may continue for another report or two as shelter, gasoline, and food prices are the biggest drivers. This was a very bad inflation report for both the White House and Fed. The White House will watch how democrats far

10-06-2022 10:42 GMT by Edward Moya

Oil well supported, gold dips

Hard to make a bearish case for oil Oil prices are continuing to rise at the end of the week, as extreme tightness in the market was compounded by the US driving season, Norwegian oil strikes this weekend and a near-fatal blow to the Iranian nuclear deal. The gains could have been more significant if not for a setback in the reopening of Shanghai as fresh restrictions and mass testing were undertaken. It's hard to make a bearish case for oil prices at the minute and OPEC+ has shown itself incapa

10-06-2022 09:35 GMT by Craig Erlam

Risk aversion sweeps across Europe

We're seeing no shortage of risk-aversion in European markets at the end of the week while US futures are treading water after the hotly-anticipated inflation data. European stocks are suffering an ECB hangover as a hawkish Christine Lagarde warned about the danger of inflation and the need to act straight away. Well, almost straight away.

10-06-2022 09:25 GMT by Craig Erlam

Pound extends losses, US inflation looms

The British pound remains under pressure. GBP/USD is in negative territory today, following back-to-back losing sessions.

10-06-2022 07:34 GMT by Kenneth Fisher

Markets eye Canadian job report, US inflation

The Canadian dollar has extended its losses today. USD/CAD is trading at 1.2743, up 0.35% on the day. Thursday saw the US dollar gives its Canadian cousin a spanking, as USD/CAD jumped 1.13%, its highest daily gain this year.

10-06-2022 06:40 GMT by Kenneth Fisher

Yen claws back, US inflation next

The Japanese yen has reversed directions and is in positive territory. In the European session, USD/JPY is trading at 133.86, down 0.38% on the day. Despite today's gains, the yen remains under strong pressure.

10-06-2022 05:10 GMT by Kenneth Fisher

Oil dips on China concerns, gold range-bound

Oil eases in Asia on China fears Oil prices consolidated their recent gains overnight, with Brent crude edging 0.70% lower to USD 122.85, and WTI easing by 0.80% to USD 121.45 a barrel. Oil has continued retreating in Asia, driven by China slowdown fears after widened Covid mass testing was announced for Shanghai this weekend.

10-06-2022 03:47 GMT by Jeffrey Halley

US dollar strengthens overnight

Inflation jitters boost US dollar Pre-US inflation nerves triggered a wave of risk aversion in equity markets overnight, which translated into haven inflows to the US dollar, which booked gains in the DM and EM space. The dollar index leapt 0.74% higher to 1.0330 overnight, although the rally’s scope was flattered by the euro sell-off, the index's largest component.

10-06-2022 03:40 GMT by Jeffrey Halley

Shanghai nerves weigh on Asian equities

Asia markets follow Wall Street lower US markets couldn’t shake off the inflation/recession hoodoo last night after European markets endured a torrid session as the ECB swung to a hawkish stance. The S&P 500 slumped by 2.38%, the Nasdaq tumbled by 2.75%, and the Dow Jones lost 1.95%.

10-06-2022 03:30 GMT by Jeffrey Halley

US inflation Friday at last

The roller coaster activity on US stock markets continued overnight, with Wall Street deciding that inflation and recessions were an issue for two days in a row. A tiny rise in US Initial Jobless Claims probably tilted Wall Street over the edge, following the European Central Bank’s tilt to a hawkish bias at their policy meeting earlier in the day. Markets eye US inflation Thankfully, Friday is here on a number of levels, but most especially because we will see the release of US Inflation and Co

10-06-2022 03:23 GMT by Jeffrey Halley

Euro reacts to ECB

OANDA Senior Market Analyst Craig Erlam discusses EURUSD in the aftermath of the ECB monetary policy decision and press conference.

09-06-2022 18:44 GMT by Craig Erlam

Oil dips on China lockdowns and stagflation risks, gold hovers

Crude prices softened as stagflation risks have risen for the US and as China’s reopening hits a major roadblock as Shanghai is expected to lock down seven districts this weekend. The oil market remains very tight, but the short-term crude demand outlook took a bit of a hit today. Whatever weakness emerges for crude will likely be short-lived as this will be one of the busiest driving seasons ever. The pent-up demand for vacation and travel will be front-loaded and demand for crude will be r

09-06-2022 14:37 GMT by Edward Moya

Stocks drop after ECB and ahead of potentially hot CPI report, bitcoin stuck at $30k

US stocks declined as global bond yields rose after the ECB prepared markets for a rate hiking cycle and on growing nervousness that tomorrow’s CPI data will clearly show inflation isn’t near peaking. The outlook is darkening and that might be how the argument for the Fed to pause in September begins.

09-06-2022 14:31 GMT by Edward Moya

Oil prices steady, gold in choppy waters

Oil steady as fresh Shanghai restrictions halt rally Oil prices are steady on Thursday after surging once more in recent days. Fresh restrictions in Shanghai may be behind the rally losing steam, with China's Covid-zero strategy the primary downside risk as far as crude is currently concerned.

09-06-2022 11:37 GMT by Craig Erlam

ECB hints at super-sized hikes

European stocks are tumbling on Thursday as the ECB laid the groundwork for multiple rate hikes over the coming months. In keeping with President Lagarde's blog post a few weeks ago, the statement that accompanied the initial decision was very clear and specific as to the actions it intends to take over the next few months and beyond. What's more, Lagarde was very clear in what it would take for the ECB to join the 50 basis point club in September.

09-06-2022 11:34 GMT by Craig Erlam

Pound unchanged, US inflation ahead

GBP/USD is drifting today, with a very light economic calendar. There are no UK releases and the only important release out of the US was unemployment claims, which rose from 202 thousand to 229 thousand (210 exp.).

09-06-2022 11:27 GMT by Kenneth Fisher

New Zealand dollar drifting

NZD/USD has been on a downswing this week, falling close to 1%. The currency is almost unchanged today, ahead of the release of New Zealand Manufacturing Sales later today. US core CPI expected to fall One of this week's highlights is the US inflation report for May, which will be released on Friday.

09-06-2022 08:28 GMT by Kenneth Fisher

Euro unchanged ahead of ECB meeting

It has been a quiet week for the euro, and that trend has continued today, as EUR/USD is unchanged at 1.0718. All eyes on ECB The ECB is poised to end its accommodative policy at today's meeting, but there is plenty of uncertainty and anticipation ahead of the announcement. The central bank has signalled that it plans to tighten policy but has been short on details.

09-06-2022 06:46 GMT by Kenneth Fisher

Oil rises on UAE warning, gold stuck

UAE Oil Minister lifts oil prices Oil prices shot higher overnight with the UAE oil minister warning that China’s reopening and the inability of OPEC+ members to pump at production targets posed more upside risks to oil prices. Tensions around Iran’s nuclear programme also diminished hopes of more Iranian crude on international markets.

09-06-2022 04:46 GMT by Jeffrey Halley

Currency markets continue to range trade

US dollar remains choppy US yields climbed higher overnight which was enough to lift the dollar index to a 0.20% gain to 102.55. It has given most of that back in Asia, falling to 102.40 thanks to a modest yen rally.

09-06-2022 04:33 GMT by Jeffrey Halley

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