Markets are quiet ahead of important CPI data which will be released later today in the USA.
- 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 in Guatemala, Japan, and New Zealand.