Daily summary: The dollar is still king, stocks in retreat

• European indices finished today's session lower after three consecutive sessions of gains Monday. Germany’s DAX lost 1.4% with miners and gas companies among the worst performers. Also many investors fear that the ongoing farmer protests in Europe over emission cut proposals will have serious repercussions on food supply chains which may hit smaller economies

• Nord Stream 1, the biggest single pipeline carrying Russian gas to Germany, began annual maintenance today and flows are expected to stop for ten days. However there are concerns that Russia may not resume gas flows after maintenance amid current tensions. 

• A new coronavirus variant was detected in Shanghai while Macau has shut down non-essential businesses for a week which additionally weighed on markets' mood.

• Major Wall Street indices are trading lower. Dow Jones fell 0.30%, while the S&P 500 and the Nasdaq dropped 0.9% and 1.8%, respectively ahead of highly anticipated inflation and consumer confidence data which will be released later this week and the start of the corporate earnings season.

• Twitter (TWTR.US) stock plunged nearly 10% after Elon Musk said he canceled his takeover deal because the social media giant did not disclose data regarding the number of bot accounts.

• NY Fed Survey showed that median 1-year inflation expectation among US consumers rose to 6.8% in June from 6.6% in May, while the 3-year view fell to 3.6% from 3.9%.

• BoE Bailey said that basic fundamentals of inflation profile showing sharp fall in inflation in 2023 remain in place. BoE expects inflation to be back to target in around 2 years.

• Oil is trading slightly lower amid heightened volatility on Monday, however buyers managed to erase most of the early losses. WTI oil trades around $103.60 after slumping to $101, while Brent price returned to $ 106.30 per barrel. 

• Gold fell $1735 and is hovering near its lowest levels in over nine months, as strengthening dollar continues to dampen demand for the bullion. Meanwhile silver stabilized around $19.20

• The dollar index jumped above the 108 mark for the first time since October 2002 

• Currently USD and CHF are the best performing major currencies while AUD and GBP lag the most.

• Major cryptocurrencies pulled back slightly on Monday amid broad risk-off sentiment. Bitcoin trades around $20.370, while Ethereum is testing $1140 level.

EURGBP currency pair is trying to erase some of last week's losses. Looking at the daily chart, one can notice that buyers have become more active around 0.8460 support. This zone is marked with the lower limit of the wide 1: 1 structure, 50% Fibonacci retracement of the last upward wave and previous price reactions. Additionally, in line with the Elliot wave theory, a potential straight ABC correction may be forming up, which supports the bullish scenario. However, if the aforementioned support at 0.8460 is negated, the sell-off may intensify and the main trend may shift into downtrend. Source:xStation5