Europe's first session of the week ended on a positive note, with the major stock market benchmarks posting notable rises. The mood in Europe was helped by revised inflation expectations.
The US Wall Street is starting the new week just as well, currently recording sizable gains. US100 futures are trading at a 1.7% gain. Investors reacted positively to the announcement of a meeting between representatives of the US and China, raising hopes of a thaw in the nervous relations over the latest spy scandal.
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Open account Try demo Download mobile app Download mobile appInvestors' attention is now focused on tomorrow's US CPI reading. Analyst consensus is that the headline as well as the core reading will show a decline in the overall US price level.
The dollar is losing against the major currencies after the weekend. The best performing currencies of the antipodes are the NZD and AUD. The US dollar is only strengthening against the yen.
The Japanese government will present the nomination of the new head of the Bank of Japan tomorrow, which will certainly have an impact on the quotes of the JPY pairs.
Gold continues its downward movement, with the price of the precious metal approaching key medium-term support in the $1850 area.
Positive sentiment in the oil market is maintained by Russia and the United Arab Emirates. Russia recently indicated that it intends to cut oil production by 0.5 million barrels per day from March, which is unlikely to be the country's last production cut this year. OPEC, however, has not reacted to such a decision. Novak, Russia's energy minister, indicated today that in 2023, more than 80% of oil exports and more than 70% of oil product exports will be directed to 'friendly' countries. Today, the United Arab Emirates indicated that the market is balanced and does not require intervention in the form of increased production. Moreover, there is a good chance that with declining production from Russia, the Arab countries will not be able to supplement the needed supply much either. There is no basis for this at the moment either, as demand in the US looks mixed and in China it is not yet showing excessive recovery.
NATGAS are continuing their declines despite the latest US weather forecasts calling for a cooling.
Cryptocurrencies started the week in a weak mood, with Bitcoin slipping back into the $21,500 area and one of the largest cryptocurrencies Binancecoin recording close to 8% declines in the face of the New York regulator's decision to hit stablecoin BinanceUSD (BUSD). On the macro side, last week's data and statements from Fed members indicated that the Fed's hike cycle could extend, and tomorrow's CPI inflation reading could bring renewed risk aversion.
The US30 has been moving in consolidation in recent times, but today's D1 candle has the potential to lead to a breakout from the triangle formation. Source: xStation5
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