Dollar slides as US inflation slows

“Don’t sit down and wait for the opportunities to come. Get up and make them.” - Madam C.J. Walker (first female self-made millionaire)

 

 

HEADLINES

 

 

• Dollar falls as U.S. consumer price rises temper in July, data show
• Oil Gains as Weaker Dollar Offsets Disappointing Stockpile Draw
• Gold up Most in 2 Weeks as ‘Flash Crash’ Slips into Distant Memory
• European investors pour nearly $1bn into gold ETFs in July
• Slowing inflation growth lifts Dow, S&P to records
• XRP Soars 30% In Rally

 

 

FOREX

 

 

Dollar falls as U.S. consumer price rises temper in July, data show

 

The dollar fell on Wednesday after U.S. inflation data showed consumer price increases eased in July, taking some pressure off the Federal Reserve to begin scaling back the monthly bond purchases that are part of its toolbox to support the economic recovery. Earlier, the U.S. currency hit 93.195, its highest since April 1, and not far off of its 2021 high of 93.439, but it sold off after data showed the consumer price index rose 0.5% last month after climbing 0.9% in June.

 

 

COMMODITIES

 

 

Oil Gains as Weaker Dollar Offsets Disappointing Stockpile Draw

 

Oil rose as a weaker dollar offset a government report that showed a smaller-than-expected decline in crude stockpiles in the wake of a viral resurgence. Futures advanced 1.4% after falling as much as 2.4% earlier when the U.S. called on the OPEC+ alliance to revive production more quickly. The dollar weakened, boosting the appeal of commodities priced in the currency, with data showing consumer prices increased at a more moderate pace in July, reducing concern about an unwinding of some of the stimulus.

 

Gold up Most in 2 Weeks as ‘Flash Crash’ Slips into Distant Memory

 

Gold prices gained their most in two weeks, with the ominous “flash crash” that greeted the yellow metal at the start of the week slipping into distant memory amid steady progress made by longs over the past 48 hours to recapturing mid-$1,700 levels.

 

European investors pour nearly $1bn into gold ETFs in July

 

European investors poured nearly $1bn into exchange traded funds that invest directly in gold in July, more than offsetting outflows from US funds and indicating the emergence of divergent views on inflation, the global economy and future direction of the precious metal.

European funds attracted net inflows of $999m, equivalent to 17.1 tonnes of gold, while ETFs domiciled in North America, led by large US funds, saw net outflows of $402m or 7.3 tonnes, according to the World Gold Council.

 

 

STOCKS

 

 

Slowing inflation growth lifts Dow, S&P to records

 

The Dow Jones Industrial Average and S&P 500 closed at record levels on Wednesday, as data indicated U.S. inflation growth may have peaked, while sectors tied to economic growth advanced on the heels of the passage of a large infrastructure bill.

The Labor Department said the consumer price index increased 0.5% last month after climbing 0.9% in June, the largest drop in month-to-month inflation in 15 months, easing concerns about the potential for runaway inflation.

 

 

CRYPTO

 

 

XRP Soars 30% In Rally

 

XRP was trading at $1.08780 by 15:58 (19:58 GMT) on the Investing.com Index on Wednesday, up 30.13% on the day. It was the largest one-day percentage gain since April 26. The move upwards pushed XRP's market cap up to $48.54556B, or 2.50% of the total cryptocurrency market cap. At its highest, XRP's market cap was $83.44071B.

 

 

CHART

 

 

US dollar / Canadian dollar – 4 hour Candlesticks

Source: GKFX Prime Metatrader 4

GBP/USD has rebounded off 1.38 and the demand area formed in late July. The rebound broke above a short term declining trendline and takes price back over the 20 day moving average. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

https://www.fxstreet.com/economic-calendar
https://finance.yahoo.com/news/us-stocks-slowing-inflation-growth-200058804.html
https://finance.yahoo.com/news/forex-dollar-falls-u-consumer-193043023.html
https://www.ft.com/content/a65a1afb-fd22-4789-a410-4abbc88ddd26
https://finance.yahoo.com/news/oil-holds-advance-report-points-000309380.html
https://www.investing.com/news/commodities-news/gold-up-most-in-2-weeks-as-flash-crash-slips-into-distant-memory-2587258
https://www.investing.com/news/cryptocurrency-news/xrp-soars-30-in-rally-2587291