Articles
US stock futures turn negative despite CPI drop
401792 July 11, 2024 21:15 Forexlive Latest News Market News
Spoos
US
equity
futures
jumped
on
the
CPI
report
but
are
now
back
in
positive
territory,
with
S&P
500
futures
slightly
lower
ahead
of
the
open.
A
couple
thoughts:
1)
The
index
jumped
yesterday
on
no
news,
climbing
1.0%.
There
will
be
talk
that
CPI
was
leaked
and
this
was
a
‘sell
the
fact’
trade.
I
don’t
think
the
data
leaked
but
there’s
plenty
of
reason
to
sell
the
fact
and
I
believe
the
market
moved
beyond
inflation
awhile
ago.
2)
The
Fed
is
behind
the
curve.
It’s
increasingly
clear
that
growth
is
the
main
worry,
not
inflation.
The
ISM
surveys
are
both
below
50
and
many
economic
data
points
have
stumbled.
The
market
may
start
to
worry
that
the
Fed
isn’t
cutting
as
the
economy
slows,
or
isn’t
going
to
cut
enough
to
stave
off
a
recession.
3)
Some
equities
are
crowded
and
this
could
be
rotation.
Russell
2000
futures
are
comfortably
higher
on
this
and
that’s
what
you
would
expect
with
bonds
strongly
bid.
We
might
be
seeing
a
rotation
out
of
a
megacap
tech
to
the
rest
of
the
market
and
that
could
be
skewing
the
index.
Mexican Peso rallies against USD after release of cooler US inflation data
401790 July 11, 2024 21:14 FXStreet Market News
-
The
Mexican
Peso
rallies
against
the
US
Dollar
after
the
release
of
cooler-than-expected
US
inflation
data. -
The
next
major
event
for
the
currency
is
the
release
of
Banxico’s
June
meeting
Minutes. -
Uncertainty
over
the
trajectory
of
future
monetary
policy
in
Mexico
is
making
traders
hesitant
to
place
bets. -
The
Peso
weakens
the
most
against
the
Pound
after
the
release
of
better-than-expected
UK
GDP
data.
The
Mexican
Peso
(MXN)
trades
higher
against
the
US
Dollar
(USD)
on
Thursday
after
the
release
of
US
Consumer
Price
Index
(CPI)
data
indicates
cooling
inflation
in
the
US.
The
CPI
data
suggests
the
Federal
Reserve
(Fed)
will
be
more
inclined
to
cut
interest
rates
in
the
near
term.
This,
in
turn,
is
negative
for
USD
since
lower
interest
rates
attract
less
foreign
capital
inflows.
MXN
trades
flat
versus
the
Pound
after
early
weakness,
attributed
to
the
release
of
better-than-expected
UK
Gross
Domestic
Product
(GDP)
data
for
May,
which
came
out
at
0.4%
month-over-month,
roundly
beating
economist’s
estimates
of
0.2%.
Traders
are
also
hesitating
ahead
of
the
release
of
the
Minutes
of
the
Bank
of
Mexico’s
(Banxico)
last
policy
meeting.
Uncertainty
regarding
the
trajectory
of
interest
rates
has
increased
after
the
release
of
higher-than-expected
headline
Mexican
inflation
data
for
June.
The
impact
of
the
Peso’s
devaluation
following
the
June
election
and
the
imported
disinflation
thus
anticipated,
are
further
factors
complicating
the
outlook.
At
the
time
of
writing,
one
US
Dollar
(USD)
buys
17.77 Mexican
Pesos,
EUR/MXN
trades
at
19.35,
and
GBP/MXN
at
22.99.
Mexican
Peso
rallies
against
Dollar
after
US
inflation
data
misses
mark
The
Mexican
Peso
appreciated
against
the
US
Dollar
on
Thursday
after
the
release
of
US
CPI
data
for
June.
US
CPI
rose
3.0%
year-on-year
in
June,
falling
below
estimates
of
3.1%
and
the
previous
month’s
3.3%.
CPI
declined
0.1%
on
a
month-over-month
basis
in
June,
when
economists
had
expected
a
0.1%
rise
from
0.0%
in
May.
Core
CPI,
which
excludes
volatile
food
and
energy
components,
meanwhile
cooled
to
3.3%,
falling
below
expectations
of
3.4%
from
3.4%
previously.
On
a
monthly
basis
core
CPI
rose
0.1%,
which
was
below
the
0.2%
forecast
and
0.2%
of
May.
The
data
is
further
evidence
that
inflation
is
falling
to
the
Fed’s
target
of
2.0%
and
makes
it
more
likely
the
central
bank
will
begin
cutting
interest
rates
–
a
negative
for
the
USD
as
it
is
likely
to
reduce
foreign
capital
inflows.
Mexican
Peso
lower
ahead
of
Banxico
Minutes
The
Minutes
of
Banxico’s
June
meeting,
scheduled
for
15:00
GMT,
are
the
next
major
release
for
the
Mexican
Peso.
The
Minutes
ought
to
provide
more
information
on
the
Banxico’s
stance
in
terms
of
the
economy
and
the
direction
of
future
policy.
These,
in
turn,
could
influence
the
Peso.
“We
expect
the
minutes
to
elaborate
on
both
disinflation
forces
and
some
of
the
upside
risks
embedded
in
the
ongoing
MXN
re-adjustment,
and
the
forces
behind
growth
disappointments,”
say
analysts
at
JP
Morgan.
Banxico’s
board
is
expected
to
acknowledge
the
“underwhelming
growth
dynamics
and
downgrade
its
growth
outlook
—
now
openly
underscoring
downside
risks
to
economic
activity,”
they
added.
If
accurate,
JP
Morgan’s
preview
suggests
the
Peso
is
at
risk
of
weakening
following
the
release,
since
a
downgrade
in
the
growth
outlook
will
put
more
pressure
on
Banxico
to
cut
interest
rates
despite
the
above-consensus
rise
in
the
June
headline
inflation
data.
Lower
interest
rates
are
negative
for
a
currency
as
they
reduce
foreign
capital
inflows.
Mixed
reaction
to
inflation
data
causes
uncertainty
The
12-month
inflation
rate
in
June
came
out
at
4.98%,
which
was
higher
than
the
4.84%
expected
by
economists
and
the
4.69%
previously,
according
to
data
from
INEGI.
Banxico
Deputy
Governor
Jonathan
Heath
wrote
on
X
that
June’s
inflation
data
was
“very
worrying.”
Heath
is
seen
as
a
monetary
“hawk”
of
the
Banxico
board
–
in
favor
of
higher
interest
rates
–
similar
to
Deputy
Governor
Irene
Espinosa.
“Headline
inflation
reached
4.98%
in
June,
the
highest
inflation
rate
in
the
last
12
months.
On
the
margin,
the
annual
rate
for
the
second
half
of
June
registered
5.17%.
Very
worrisome,”
wrote
Heath.
This
comes
after
Heath’s
comments
comparing
his
stance
to
that
of
the
Chairman
of
the
Federal
Reserve,
Jerome
Powell,
in
terms
of
its
data
dependency.
The
effect
of
his
words
was
to
lower
rate-cut
bets
and
further
fuel
the
rally
in
the
Peso.
Deputy
Governor
of
the
Bank
of
Mexico
Galia
Borja
urged
caution
in
recent
remarks.
“It’s
prudent
not
to
make
hasty
decisions”
regarding
monetary
policy,
Borja
said,
adding
that
officials
must
be
patient
and
current
policy
was
“undoubtedly
restrictive.”
Slowdown
in
core
inflation
could
be
key
–
Capital
Economics
Whilst
headline
inflation
in
Mexico
rose
in
June,
core
inflation,
which
excludes
volatile
food
and
energy
components,
came
out
below
expectations
at
0.22%,
when
economists
had
estimated
0.24%.
Nevertheless,
the
June
reading
was
above
the
0.17%
in
May.
The
slower
increase
in
core
inflation,
however,
makes
economists
at
Capital
Economics
less
concerned
about
the
rise
in
headline
inflation.
“Core
inflation
edged
down
last
month.
While
there’s
still
a
lot
of
uncertainty
around
the
next
rate
decision
in
August,
we
think
that
the
easing
of
core
price
pressures,
alongside
the
weak
run
of
activity
data
and
the
rebound
in
the
Peso
leave
an
August
rate
cut
in
play,”
says
Kimberley
Sperrfechter,
Emerging
Markets
Economist
at
Capital
Economics.
Assuming
Banxico
does
go
ahead
and
cut
interest
rates
in
August,
this
could
have
a
negative
impact
on
the
Peso.
Technical
Analysis:
USD/MXN
possible
in
ABC
correction
USD/MXN
is
possibly
falling
in
the
wave
C
of
an
ABC
correction
that
started
after
the
June
12
high.
The
short-term
trend
is
bearish,
and
given
“the
trend
is
your
friend”
the
odds
favor
more
downside.
USD/MXN
Daily
Chart
USD/MXN
has
broken
support
at
the
17.87
(June
24
low),
however,
the
break
was
not
decisive,
indicating
the
possibility
it
may
be
false
and
the
pair
could
recover.
USD/MXN
has
also
fallen
to
the
conservative
target
for
wave
C,
which
is
measured
by
taking
the
0.618
Fibonacci
ratio
of
wave
A
as
a
guide
since
C
is
often
equal
to
A
or
a
Fibonacci
ratio
of
it.
Given
that
the
pair
has
reached
this
lesser
target,
there
is
a
further
risk
of
a
recovery
evolving.
If
USD/MXN
breaks
below
Wednesday’s
low
at
17.76,
however,
it
would
reinvigorate
bears
and
probably
lead
to
a
move
down
to
the
target
at
the
end
of
wave
C,
at
roughly
the
level
of
the
50-day
Simple
Moving
Average
(SMA)
situated
at
17.60.
Meanwhile,
the
direction
of
the
medium
and
long-term
trends
remain
in
doubt.
Economic
Indicator
Consumer
Price
Index
(YoY)
Inflationary
or
deflationary
tendencies
are
measured
by
periodically
summing
the
prices
of
a
basket
of
representative
goods
and
services
and
presenting
the
data
as
The
Consumer
Price
Index
(CPI).
CPI
data
is
compiled
on
a
monthly
basis
and
released
by
the
US
Department
of
Labor
Statistics.
The
YoY
reading
compares
the
prices
of
goods
in
the
reference
month
to
the
same
month
a
year
earlier.The
CPI
is
a
key
indicator
to
measure
inflation
and
changes
in
purchasing
trends.
Generally
speaking,
a
high
reading
is
seen
as
bullish
for
the
US
Dollar
(USD),
while
a
low
reading
is
seen
as
bearish.
Russia Central Bank Reserves $ increased to $597.2B from previous $590.5B
401789 July 11, 2024 21:14 FXStreet Market News
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Ripple CEO urges Democrats to take action on SEC Chair Gensler’s “unlawful war on crypto”
401786 July 11, 2024 20:39 FXStreet Market News
-
Ripple
CEO
Brad
Garlinghouse
called
the
majority
of
Democrats
to
take
notice
of
SEC’s
war
on
crypto
during
a
roundtable
on
Wednesday. -
The
event
brought
together
Coinbase
CLO,
key
congressional
leaders,
and
Garlinghouse,
and
called
attention
to
American
innovation
and
crypto. -
XRP
hovers
around
$0.45,
adding
0.50%
to
its
value
on
Thursday.
Ripple
(XRP)
CEO
Brad
Garlinghouse
spoke
at
a
crypto
roundtable
event
on
Wednesday.
The
Ripple
executive
slammed
Democrats
for
not
taking
notice
of
the
Securities
and
Exchange
Commission
(SEC)
Chair
Gary
Gensler’s
enforcement
actions
on
crypto.
Garlinghouse
addressed
a
gathering
that
included
Mark
Cuban,
Coinbase
CLO
Paul
Grewal,
and
key
US
Congressional
leaders.
There
was
no
further
update
in
the
SEC
vs.
Ripple
lawsuit
and
XRP
hovers
around
$0.45,
at
the
time
of
writing.
Daily
Digest
Market
Movers:
Ripple
executive
slams
democrats
for
lack
of
engagement
with
the
crypto
industry
-
Ripple
executive
Brad
Garlinghouse
thanked
the
crypto
roundtable
participants,
early
on
Wednesday
morning,
after
addressing
a
gathering
that
brought
together
several
US
Congressional
leaders
and
the
Coinbase
CLO
Paul
Grewal. -
Garlinghouse
slammed
the
Democrats
for
“enabling”
what
he
refers
to
as
an
unlawful
war
on
crypto. -
According
to
the
Ripple
CEO,
the
SEC
Chair
has
sabotaged
the
ability
of
Americans
to
innovate. -
Garlinghouse
noted
that
Republicans
have
announced
a
pro-crypto
stance
and
called
out
voters
to
take
note
of
the
issue
that
affects
crypto
traders
in
the
US.
-
The
SEC
vs.
Ripple
ruling
is
expected
in
July.
Judge
Analisa
Torres
will
rule
on
a
key
issue,
the
fine
to
be
imposed
on
Ripple
for
alleged
securities
law
violation.
While
the
SEC
quoted
$102.6
million
in
its
last
letter,
Ripple
has
put
forward
a
$10
million
figure. -
XRP
traders
are
closely
watching
the
SEC
vs.
Ripple
lawsuit
and
the
US
Presidential
election,
with
CEO
Brad
Garlinghouse’s
recent
comments
on
Democrats.
Technical
analysis:
XRP
extends
gains
to
$0.45
Ripple
is
in
an
upward
correction.
The
altcoin
extends
gains
on
Thursday,
rallying
to
$0.4509
at
the
time
of
writing.
Ripple
could
rally
towards
the
next
key
resistance
at
$0.4760,
the
July
2
low.
This
marks
a
5.55%
increase
in
XRP
price.
The
Moving
Average
Convergence
Divergence
(MACD)
indicator
shows
that
MACD
line
is
about
to
cross
above
the
signal
line.
If
this
occurs,
it
would
support
a
bullish
thesis
for
Ripple.
XRP/USDT
daily
chart
Ripple
could
find
support
at
$0.4032,
the
July
8
low,
and
$0.3823,
the
July
5
low.
Bitcoin,
altcoins,
stablecoins
FAQs
Bitcoin
is
the
largest
cryptocurrency
by
market
capitalization,
a
virtual
currency
designed
to
serve
as
money.
This
form
of
payment
cannot
be
controlled
by
any
one
person,
group,
or
entity,
which
eliminates
the
need
for
third-party
participation
during
financial
transactions.
Altcoins
are
any
cryptocurrency
apart
from
Bitcoin,
but
some
also
regard
Ethereum
as
a
non-altcoin
because
it
is
from
these
two
cryptocurrencies
that
forking
happens.
If
this
is
true,
then
Litecoin
is
the
first
altcoin,
forked
from
the
Bitcoin
protocol
and,
therefore,
an
“improved”
version
of
it.
Stablecoins
are
cryptocurrencies
designed
to
have
a
stable
price,
with
their
value
backed
by
a
reserve
of
the
asset
it
represents.
To
achieve
this,
the
value
of
any
one
stablecoin
is
pegged
to
a
commodity
or
financial
instrument,
such
as
the
US
Dollar
(USD),
with
its
supply
regulated
by
an
algorithm
or
demand.
The
main
goal
of
stablecoins
is
to
provide
an
on/off-ramp
for
investors
willing
to
trade
and
invest
in
cryptocurrencies.
Stablecoins
also
allow
investors
to
store
value
since
cryptocurrencies,
in
general,
are
subject
to
volatility.
Bitcoin
dominance
is
the
ratio
of
Bitcoin’s
market
capitalization
to
the
total
market
capitalization
of
all
cryptocurrencies
combined.
It
provides
a
clear
picture
of
Bitcoin’s
interest
among
investors.
A
high
BTC
dominance
typically
happens
before
and
during
a
bull
run,
in
which
investors
resort
to
investing
in
relatively
stable
and
high
market
capitalization
cryptocurrency
like
Bitcoin.
A
drop
in
BTC
dominance
usually
means
that
investors
are
moving
their
capital
and/or
profits
to
altcoins
in
a
quest
for
higher
returns,
which
usually
triggers
an
explosion
of
altcoin
rallies.
Full Article
Live Coverage: CPI inflation misses all estimates, Gold and stocks jump, US Dollar dives
401784 July 11, 2024 20:39 FXStreet Market News
US
core
CPI
missed
estimates
with
0.1%
MoM
and
3.3%
YoY.
Headline
data
slipped
as
well.
Gold
and
stocks
are
partying,
the
US
Dollar
is
down.
Chances
of
a
rate
cut
in
September
have
substantially
increased.
Live
coverage
FXStreet
Premium subscribers
can
participate
in
the
coverage,
ask
analysts
questions
live,
and
lots
more.
Why
CPI
inflation
matters
for
markets
Will
the
CPI
report
to
officials
at
the
Federal
Reserve
(Fed)
the
confidence
they
need
to
cut
interest
rates?
That
is
what
markets
hope
for,
as
the
US
economy
slows
down.
Bonds
point
to
the
first
cut
coming
in
September,
The
most
important
figure
is
core
CPI
MoM,
which
excludes
volatile
energy
and
food
products
on
which
the
Fed
has
little
impact.
Any
change
of
0.1%
matters.
A
0.1%
read
would
boost
stocks
and
Gold,
while
weighing
on
the
US
Dollar.
A
hot
0.3%
print
would
depress
the
precious
metal
and
equities,
lifting
the
Greenback.
A
0.2%
outcome
is
expected,
and
that
would
still
be
a
positive
development.
It
would
reflect
an
annualized
rise
of
roughly
2.5%,
close
to
the
Fed’s
2%
target.
The
YoY
figure
is
still
above
3%.
Live
financial
market
coverage
FXStreet
covers
major
economic
releases
in
a
live
blog
format,
to
provide
readers
an
instant
verdict
of
the
data,
rapid
analysis
of
key
assets,
and
for
Premium
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to
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our
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real
time.
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and
a
bullish/bearish
indicator
for
Gold
on
critical
events.
Join
FXStreet
Premium
here.
Coming up soon – CPI data for June – here the ranges to watch
401780 July 11, 2024 20:15 Forexlive Latest News Market News
US
consumer
inflation
data:
-
for
June
2024 -
due
at
1230
GMT,
which
is
0830
US
Eastern
time
What
to
expect?
This
snapshot
is
from
the
ForexLive
economic
data
calendar,
access
it
here.
Taking
a
look
at
the
range
of
expectations
compared
to
the
median
consensus
(the
‘expected’
in
the
screenshot
above)
for
the
key
data
points:
June
CPI
Headline
y/y
range
of
estimates
showing:
-
3.0%
to
3.3%
June
CPI
Headline
m/m
range
of
estimates
showing:
-
0.0
to
0.2%
June
CPI
excluding
food
and
energy
(the
core
rate
of
inflation)
y/y
range
of
estimates
showing:
-
3.3
to
3.5%
June
CPI
excluding
food
and
energy
(the
core
rate
of
inflation)
m/m
range
of
estimates
showing:
-
0.1
to
0.3%
***
Why
is
knowledge
of
such
ranges
important?
Check
out
the
longer
version
of
this
post
I
popped
up
back
during
Asia
time,
link
here.
GBP/JPY rises to new 16-year high after Pound Sterling rallies on strong GDP data
401778 July 11, 2024 20:14 FXStreet Market News
-
GBP/JPY
rallies
to
a
new
high
above
208
after
the
release
of
better-than-expected
UK
GDP
data
supports
GBP. -
The
data
could
lead
the
BoE
to
take
a
more
cautious
approach
to
cutting
interest
rates,
supporting
GBP. -
Japanese
PPI
inflation
data
rose
strongly
in
June
but
BoJ
is
still
not
expected
to
aggressively
raise
rates,
weighing
on
JPY.
GBP/JPY
has
reached
a
new
16-year
high
of
208.11
on
Thursday,
driven
by
an
appreciating
Pound
Sterling
(GBP)
after
the
release
of
better-than-expected
Gross
Domestic
Product
(GDP)
data
for
the
United
Kingdom,
in
May.
GBP/JPY
Daily
Chart
The
UK
economy
grew
at
a
pace
of
0.4%
month-over-month
in
May,
higher
than
economists’
consensus
estimates
of
0.2% and
April’s
0.0%,
according
to
data
from
the
Office
of
National
Statistics
(ONS),
released
on
Thursday.
“Many
retailers
and
wholesalers
had
a
good
month,
with
both
bouncing
back
from
a
weak
April.
Construction
grew
at
its
fastest
rate
in
almost
a
year
after
recent
weakness,
with
house
building
and
infrastructure
projects
boosting
the
industry”,
said
Liz
McKeown,
Director
of
Economic
Statistics
at
the
ONS.
The
stronger
growth
data
for
May
suggests
UK
GDP
growth
in
Q2 could
come
out
at
0.7%
quarter-over-quarter,
which
is
higher
than
the
Bank
of
England’s
(BoE)
forecast
of
0.5%,
according
to
Capital
Economics.
“At
the
margin
this
may
mean
the
Bank
(BoE)
doesn’t
need
to
rush
to
cut
interest
rates.
We
still
think
the
Bank
will
cut
interest
rates
from
5.25%
to
5.00%
at
the
next
policy
meeting
in
August,
although
the
timing
of
the
first
cut
will
be
heavily
influenced
by
June’s
inflation
and
May’s
labour
market
data
releases
next
week,”
says
Ashley
Webb,
UK
Economist
at
Capital
Economics.
Though
still
unlikely,
a delay
in
the
timing
of
the
BoE’s
first
rate
cut
would
lead
to
a
stronger
Pound
Sterling.
More
probable
is
that
the
BoE
reduces
interest
rates
at
a
slower
pace.
This
too
would
support
GBP,
however, since
higher
interest
rates
are
positive
for
currencies
as
they
attract
greater
inflows
of
foreign
capital.
It
would
also
probably
push
GBP/JPY
higher.
That
said,
expectations
remain
elevated
the
BoE
will
pull
the
trigger
and
cut
rates
in
August.
“We
believe
it
is
a
done
deal
(August
rate
cut),
as
there
is
simply
no
reason
to
wait
until
September
19.
Inflation
is
already
at
the
2%
target,
while
the
economic
data
have
clearly
softened
in
recent
months,”
said
Dr.
Win
Thin,
Global
Head
of
Markets
Strategy
at
Brown
Brothers
Harriman
(BBH).
GBP/JPY
upside
capped
by
hot
Japanese
inflation
GBP/JPY
upside
may
be
tempered,
however,
after
recent
hotter-than-expected
Producer
Price
Index
(PPI)
data
from
Japan.
PPI
measures
“factory
gate
price”
inflation
which
is
often
a
precursor
to
inflation
in
the
wider
economy.
PPI
in
June
came
out
at
2.9%
year-over-year,
beating
the
previous
month’s
2.6%
YoY
reading
and
in
line
with
consensus
expectations.
It
was
the
fifth
consecutive
month
of
increasing
gains
for
the
indicator,
the
41st
consecutive
month
of
PPI
inflation,
and
the
highest
reading
since
August
2023.
Despite
the
higher
inflation
data
the
Bank
of
Japan
(BoJ)
is
still
not
expected
to
begin
an
aggressive
tightening
cycle
in
which
it
ratchets
up
interest
rates
in
meeting
after
meeting.
Rather
it
is
only
expected
to
make
0.35%
of
interest-rate
hikes
in
the
next
12
months
according
to
BBH,
so
“upwards
pressure”
is
likely
to
persist in
Yen
pairs.
GBP/JPY
faces
a
further
risk
of
“stealth
intervention”
by
the
Japanese
authorities
to
prop
up
the
Japanese
Yen
(JPY),
according
to
Sagar
Dua,
Editor
at
FXStreet.
In
late
April
and
early
May
2024,
the
Bank
of
Japan
(BoJ)
undertook
direct
market
interventions
to
buttress
the
Yen
when
it
was
at
lower
levels.
A
too-weak
Yen
is
seen
as
a
financial
stability
risk
for
importers
and
encourages
the
“wrong
kind”
of
inflation
in
the
economy,
according
to
Japanese
policy
makers
and
currency
czars.
Brazil Retail Sales (MoM) came in at 1.2%, above expectations (-0.9%) in May
401777 July 11, 2024 20:14 FXStreet Market News
Information
on
these
pages
contains
forward-looking
statements
that
involve
risks
and
uncertainties.
Markets
and
instruments
profiled
on
this
page
are
for
informational
purposes
only
and
should
not
in
any
way
come
across
as
a
recommendation
to
buy
or
sell
in
these
assets.
You
should
do
your
own
thorough
research
before
making
any
investment
decisions.
FXStreet
does
not
in
any
way
guarantee
that
this
information
is
free
from
mistakes,
errors,
or
material
misstatements.
It
also
does
not
guarantee
that
this
information
is
of
a
timely
nature.
Investing
in
Open
Markets
involves
a
great
deal
of
risk,
including
the
loss
of
all
or
a
portion
of
your
investment,
as
well
as
emotional
distress.
All
risks,
losses
and
costs
associated
with
investing,
including
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loss
of
principal,
are
your
responsibility.
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nor
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author
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that
is
found
at
the
end
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posted
on
this
page.
If
not
otherwise
explicitly
mentioned
in
the
body
of
the
article,
at
the
time
of
writing,
the
author
has
no
position
in
any
stock
mentioned
in
this
article
and
no
business
relationship
with
any
company
mentioned.
The
author
has
not
received
compensation
for
writing
this
article,
other
than
from
FXStreet.
FXStreet
and
the
author
do
not
provide
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recommendations.
The
author
makes
no
representations
as
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the
accuracy,
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or
suitability
of
this
information.
FXStreet
and
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will
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for
any
errors,
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or
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losses,
injuries
or
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from
this
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and
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display
or
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and
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author
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nothing
in
this
article
is
intended
to
be
investment
advice.
EUR: Enjoy the silence – ING
401774 July 11, 2024 19:39 FXStreet Market News
The
Euro
(EUR)
is
enjoying
some
“silence”
on
French
politics,
which
is
making
investors
comfortable
so
far
with
EUR/USD
drifting
slightly
higher
from
the
1.0800-1.0830
anchor,
ING’s
FX
strategist
Francesco
Pesole
notes.
EUR/USD
eyes
1.0900
in
the
short
run
“If
you
read
French
news,
you
would
get
anything
but
a
sense
of
silence,
but
global
markets
inherently
filter
out
noise
to
prioritise
major
developments,
and
so
far
there
have
been
none
on
coalition
talks.
President
Emmanuel
Macron
joined
the
NATO
meeting
leaving
French
parties
from
the
left
working
on
a
strategy
to
secure
key
government
seats.”
“Interestingly,
the
option
of
a
deal
between
Macron’s
party
and
the
moderate
right-wing
Republicans
is
gaining
some
momentum.
Former
prime
minister
Edouard
Philippe
(who
is
part
of
Macron’s
alliance)
is
attempting
to
broker
the
deal.
This would,
however, only
guarantee
a
relative
majority.”
“The
OAT-Bund
10-year
spread
has
been
stabilising
around
65bp,
and
while
we
continue
to
see
a
risk
of
rewidening
as
markets
may
grow
impatient
with
the
political
gridlock,
the
rest
of
this
week
should
see
a
shift
of
focus
towards
US
macro
developments.
As
discussed
above,
the
US
Dollar
may
soften
today
and
EUR/USD
could
eye
1.0900.
The
eurozone
calendar
is
empty.”
Natural Gas flirts with breakdown ahead of US CPI release
401772 July 11, 2024 19:39 FXStreet Market News
-
Natural
Gas
dips
again
on
Thursday,
testing
vital
support
before
a
steep
decline. -
Traders
see
demand
in
Europe
soar
again,
while
the
June
US
CPI
release
holds
a
grip
on
US
Gas
prices. -
The
US
Dollar
index
eases
and
trades
below
105.00
on
concerns
over
President
Biden
staying
in
the
race.
Natural
Gas
price
(XNG/USD)
ticks
down
on
Thursday
for
the
third
day
in
a
row
this
week,
with
mounting
pressure
on
critical
support
that
stands
before
a
possible
steep
decline.
The
US
Consumer
Price
Index
(CPI)
release
later
in
the
day
is
keeping
a
grip
on
the
US
Gas
prices,
where
a
further
disinflationary
print
could
mean
a
near
certainty
that
a
Federal
Reserve’s
(Fed)
interest
rate
cut
in
September
is
coming.
Lower
interest
rates
would
boost
demand,
with
a
positive
outlook
for
the
next
quarters
in
terms
of
demand
for
Natural
Gas.
Meanwhile,
the
US
Dollar
Index
(DXY),
which
tracks
the
Greenback’s
value
against
six
major
currencies,
edges
lower
ahead
of
the
US
CPI
release,
while
important
public
figures
such
as
Nancy
Pelosi
and
Georges
Clooney
are
calling
for
President
Joe
Biden
to
make
way
for
a
better
candidate
on
the
presidential
ballot,
weighing
on
the
US
Dollar.
Markets
are
holding
their
breath
until
the
CPI
data
comes
out
at
12:30
GMT
because
it
is
vital.
Should
the
CPI
data
be
a
surprise
hotter-than-expected
inflation,
any
possibility
for
a
rate
cut
in
September
would
be
whipped
out,
with
markets
repricing
a
push
towards
either
December
or
even
only
at
the
start
of
2025
for
the
Fed
to
start
lowering
borrowing
costs.
Natural
Gas
is
trading
at
$2.34
per
MMBtu
at
the
time
of
writing.
Natural
Gas
news
and
market
movers:
CPI
footprint
-
Expect
substantial
market
volatility
on
Thursday
around
12:30
GMT,
when
the
US
Consumer
Price
Index
numbers
for
June
will
be
released,
even
in
Gas
prices. -
The
Karsto
plant
in
Norway
faces
maintenance
until
July
13
following
another
extension
earlier,
according
to
network
operator
Gassco
AS,
Bloomberg
reports. -
Woodside
Energy
in
Australia
has
signed
a
deal
with
Taiwan
for
LONG
deliveries,
Reuters
reports. -
The
gas
premium
spread
in
Europe
is
widening
between
the
southern
peripheral
countries
and
mainland
Europe.
Elevated
temperatures
across
Spain,
Portugal,
and
Italy
are
triggering
a
short-term
tightness
with
elevated
demand
over
steady
supply,
Bloomberg
reports.
Natural
Gas
Technical
Analysis:
CPI
catalyst
underway
Natural
Gas
price
stabilizes
near
the
crucial
support
area
at
$2.30
ahead
of
June’s
US
CPI
release.
It
becomes
clear
that
commodity
traders
seek
an
outside
catalyst
to
move
price
action
in
either
direction.
Should
the
CPI
release
be
binary,
expect
to
see
a
substantial
move
either
way
in
Gas
price
on
the
back
of
the
CPI
outcome
confirming
or
denying
a
September
rate
cut.
The
200-day
SMA
is
the
first
force
to
reckon
with
on
the
upside,
near
$2.51,
closely
followed
by
the
55-day
SMA
at
$2.63.
Once
back
above,
the
pivotal
level
near
$3.08
(March
6,
2023,
high)
remains
key
resistance
after
its
false
break
last
week.
On
the
downside,
the
support
level,
which
could
mean
some
buying
opportunities,
is
$2.30,
the
100-day
SMA
that
falls
in
line
with
the
ascending
trend
line
since
mid-February.
In
case
that
level
does
not
hold
as
support,
look
for
the
pivotal
level
near
$2.13,
which
has
acted
as
a
cap
and
floor
in
the
past.
Natural
Gas:
Daily
Chart
Natural
Gas
FAQs
Supply
and
demand
dynamics
are
a
key
factor
influencing
Natural
Gas
prices,
and
are
themselves
influenced
by
global
economic
growth,
industrial
activity,
population
growth,
production
levels,
and
inventories.
The
weather
impacts
Natural
Gas
prices
because
more
Gas
is
used
during
cold
winters
and
hot
summers
for
heating
and
cooling.
Competition
from
other
energy
sources
impacts
prices
as
consumers
may
switch
to
cheaper
sources.
Geopolitical
events
are
factors
as
exemplified
by
the
war
in
Ukraine.
Government
policies
relating
to
extraction,
transportation,
and
environmental
issues
also
impact
prices.
The
main
economic
release
influencing
Natural
Gas
prices
is
the
weekly
inventory
bulletin
from
the
Energy
Information
Administration
(EIA),
a
US
government
agency
that
produces
US
gas
market
data.
The
EIA
Gas
bulletin
usually
comes
out
on
Thursday
at
14:30
GMT,
a
day
after
the
EIA
publishes
its
weekly
Oil
bulletin.
Economic
data
from
large
consumers
of
Natural
Gas
can
impact
supply
and
demand,
the
largest
of
which
include
China,
Germany
and
Japan.
Natural
Gas
is
primarily
priced
and
traded
in
US
Dollars,
thus
economic
releases
impacting
the
US
Dollar
are
also
factors.
The
US
Dollar
is
the
world’s
reserve
currency
and
most
commodities,
including
Natural
Gas
are
priced
and
traded
on
international
markets
in
US
Dollars.
As
such,
the
value
of
the
US
Dollar
is
a
factor
in
the
price
of
Natural
Gas,
because
if
the
Dollar
strengthens
it
means
less
Dollars
are
required
to
buy
the
same
volume
of
Gas
(the
price
falls),
and
vice
versa
if
USD
strengthens.