- Following last week’s fall in annualized US CPI data, the risk-on rally continues with stock markets rising in much of the world. The S&P 500 Index and the NASDAQ 100 Index both rose yesterday to close at new 3-month highs. The Japanese Nikkei 225 Index is very close to making a new high for 2022, while several European indices are making new 2-month highs. The standout stock market is China, which is performing poorly.
- The Forex market saw the US Dollar make gains after its recent decline, against every major currency except the Japanese Yen. The New Zealand Dollar looks to be the weakest currency.
- The Reserve Bank of Australia released its most recent meeting minutes, which suggest there will be further rate hikes, which had already been expected.
- The Chinese Yuan has reached a new 3-month low against the US Dollar.
- There will be a release of Canadian CPI (inflation) data later today.
- Daily new coronavirus cases globally dropped last week for the fourth consecutive week.
- It is estimated that 67.4% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 7.5% of the global population is confirmed to have contracted the virus at some time, although the true number is highly likely to be much larger.
- Total confirmed new coronavirus cases worldwide stand at over 596.1 million with an average case fatality rate of 1.08%.
- The rate of new coronavirus infections appears to now be most significantly increasing in Chile, South Korea, The Marshall Islands, Moldova, Mongolia, Serbia, Trinidad, and Tonga.
Forex Today: US Dollar Bounces Back, Stocks Rally
Adam Lemon
The risk-on rally sparked by last week’s lower than expected US inflation data continues.