Market Overview - Page 119

Consumer inflation in Britain continues to accelerate, but producer prices show the first signs of cooling. CPI rose to 5.4 y/y in December, with a 0.5% monthly increase after 0.7% in November. Current figures are above 2008 and 2011 peaks.

Gold is trading near $1819 an ounce, unable to take advantage of a spike in geopolitical risks due to an environment of rising interest rates. Two-year US government bond yields have reached 1.06%, pre-pandemic levels. Rising yields on expectations of.

Volatility in the Turkish lira has declined dramatically, finding other hotspots. Risky attempts by the Turkish Central Bank to thwart a speculative attack have paid off, providing respite to the national currency. The dollar has been mainly in a range.

China published mixed economic data noting a slowdown in a year-over-year comparison, but some of the data exceeded expectations. The Chinese renminbi has been on the offensive against the US dollar for the past week, bringing USDCNH back to test.

After nearly a month of strengthening against the dollar, the British pound is encountering strong resistance. Speculative interest in the British currency is shrinking as more hawkish Fed rhetoric is being put into the GBPUSD quotes in recent weeks as.

On Thursday, the Russian ruble lost more than 2% against the dollar and euro, as both sides’ hawkish comments followed the Russia-NATO meeting. In early trading on Friday, the dollar was above 76.6, and the euro was 87.8 on the.

Fundamental and technical factors on the dollar locally give opposite signals. However, after a long period of strengthening the American currency, a corrective DXY pullback looks like a logical short-term prospect. On Wednesday, the US dollar came under pressure, the.

US consumer prices rose 0.5% in December, accelerating to 7.0% y/y. The core index added 0.6% on the month and 5.5% y/y. Prices excluding food and energy added more than 1.7% in the last three months, noting that inflation is.

WTI crude oil surpassed the $80 mark in Tuesday’s trading, near two-month highs and solidly above the 2018-2021 pivot levels near $75. Oil’s fall in November-December by more than a quarter from a peak in late October probably served as.

An active reassessment of the outlook for monetary policy continues in the financial markets, but these changes have so far not moved gold from its position near $1800. The latest gold performance shows that it remains a portfolio diversification instrument,.

The Fed continued to surprise markets at the start of the year with hawkish rhetoric by unexpectedly raising discussions on balance sheet shrinking. Investors are noticing that the issue has been on the table much earlier than it was before..

The main currency market pair, EURUSD, is trading in a sideways pattern of around 100 pips, rarely breaking out of it for long. The observed balance is very fragile. The news backdrop from Europe and the US has been very.