Open Doors & Opportunity
Ridhwan Rosli
Business Development Manager - APAC Region @ Weltrade Ltd. Global Strategic Partnerships | Global Macro Sense
Investors cautiously positioning ahead of today’s release of inflation data from the US at 2030 MST. Tech stocks pared back gains led by tech as inflationary concerns from higher oil prices seep into expectations on the US Federal Reserve’s rate trajectory. Inflation is expected to rise to 3.6% from prior 3.2% year-on-year while core readings are expected to drop to 4.3% from prior 4.7%.
WTI Crude trades at new 10-month highs following the release of OPEC’s Monthly Report, projecting continued strong demand growth in a tight supply environment on top of dollar weakness during yesterday’s trade helping boost bullish sentiment. Oil traders have more on the docket today as the US Department of Energy is set to release weekly inventory numbers at 2230 MST. Inventories are expected to come at a build of 0.237M from prior week’s draw of -2.666M.
In FX, USDJPY pares back sharp losses from recent Yen strength on the back of BoJ Governor Ueda opened the door to shift from negative interest rates. The Yen trades back into the gap with a lot of room to fill. A comment I heard from Bloomberg that explains so succinctly in my opinion why the market has priced the recent shift in tone from the BoJ so vehemently is that “now that the door is open. It really is a matter of time before they walk through.” i.e. let’s look for those shorts/longs.
On Thursday, the ECB Rate announcement is expected to hold rates at 4.25% but markets are pricing in ~40% chance of a 25bps hike as hawks remain concerned on the persistence of high inflation. We are, however, trading in a rather gorgeous channel on EURUSD.
That is it from me today on primary drivers on select asset classes and some gorgeous, clear-cut price action & levels in this here markets. This was – Your Morning Reed.
Fancy a hand at trading yourself? You can download the Vantage App or open a Live Account here & experience the seamless onboarding process with an award-winning, multinational, multi-asset regulated brokerage house via the links below. Contact for more details!
Sources: Trading Economics, Reuters, Vantage Markets, Bloomberg, Wall Street Breakfast
Disclaimer: This material is for information purposes only and is not intended as solicitation nor advice on trading or investing. Trading CFDs carries with them substantial risks to your capital.