Forex Today: Markets Pause Ahead of US Inflation & FOMC

Adam Lemon

Markets are keenly awaiting today’s releases of US CPI data and the minutes of last month’s FOMC meeting.

  • Market trends have mostly paused on indecisive trading as today’s release of US inflation (CPI) data approaches. Rising inflation has become a major concern and today’s release may have a significant impact upon price movement of stock markets and the US dollar.

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  • WTI Crude Oil November futures again made a new 7-year high daily close above $80 yesterday, but the bullish momentum has slowed to a crawl. The bullish trend is still valid but a strong reversal is quite possible later today.

  • In the Forex market, the USD/JPY again rose firmly yesterday, reaching a new high at 113.78 – another new 2.5-year high. This is due mostly to weakness in the Japanese yen, and we are likely to see the price continue to rise over the short term. The EUR/USD currency pair is also in a downwards trend but momentum is slow there, with the price right now in a bullish retracement.

  • Global stock markets are mostly lower, with north American markets falling yesterday while most Asian markets fell during Wednesday’s session. The Japanese Nikkei 225 Index is down slightly by 0.20% while the Chinese HSI is down by 1.43%.

  • Last week saw the seventh consecutive weekly fall in global new confirmed coronavirus cases.

  • It is estimated that 47.6% of the world’s population has received at least one dose of a coronavirus vaccination.

  • Total confirmed new coronavirus cases worldwide stand at over 239.4 million with an average case fatality rate of 2.04%.

  • The rate of new coronavirus infections appears to now be increasing most quickly in Armenia, Australia, Barbados, Bulgaria, Croatia, Dominican Republic, Egypt, Estonia, Latvia, Lithuania, Moldova, New Zealand, Romania, Russia, Singapore, Slovakia, and the Ukraine.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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