Markets are eagerly awaiting today’s release of US CPI (inflation) data today which is expected to show a continued decline in the annualized rate, from 7.7% to 7.3%. If the number comes in even lower than 7.3% it could spart a risk-on rally which would be likely to boost the US and global stock markets (by as much as 10% over the medium-term according to JP Morgan) and sink the US Dollar. This would give a firm boost to the bullish trend we are seeing in the EUR/USD currency pair. However, there is a feeling that aside from declining inflation, a recession in the USD is becoming more likely to happen in 2023.
The price of Silver closed Friday at a new 6-month high, unlike the rest of the commodity market which is in decline. Silver is now attractive to trend traders and has a positive expectancy to rise over the coming day.
British GDP data came in slightly higher than expected yesterday, showing a month-on-month increase of 0.5%.
There will be a release of UK unemployment data today.
The former CEO of FTX Sam Bankman-Fried has been arrested in the Bahamas and an extradition to the USA to face criminal charges is in the pipeline.
Daily new global coronavirus cases rose last week for the fourth consecutive week.
It is estimated that 68.6% of the world’s population has received at least one dose of a coronavirus vaccination.
Total confirmed new coronavirus cases worldwide stand at over 654.2 million with an average case fatality rate of 1.02%.
The rate of new coronavirus infections appears to now be significantly increasing only inGuatemala, Japan, and New Zealand.
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.