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Dollar spikes on highest inflation in 3 decades

"An investor without investment objectives is like a traveler without a destination." - Ralph Seger 

 

 

HEADLINES

 

 

  • Dollar wins as inflation fears return
  • GBP/USD to tank towards the 1.34 level amid heightened Brexit concerns – Scotiabank
  • Oil prices plunge into close, roiled by inflation fears
  • Gold Hits 5-Month Highs as U.S. Inflation Takes Center Stage
  • Wall Street extends sell-off on fears of longer-term inflation wave
  • Rivian Stock Surges in Closely Watched IPO

 

 

FOREX

 

 

Dollar wins as inflation fears return

 

Risk-aversion took over financial markets and the dollar made the most out of it. The catalyst was US inflation, as the US annual Consumer Price Index soared to its highest in three decades, hitting 6.3% YoY in October. Stocks took a turn for the worse as yields soared, reflecting mounting concerns of further tightening in the US.

 

GBP/USD to tank towards the 1.34 level amid heightened Brexit concerns – Scotiabank

 

“With the UK planning to abandon parts of the accord that regulate the free movement of goods between Northern Ireland and Great Britain, the EU is considering retaliatory measures that could eventually include ripping up the free-trade agreement signed in late-2020. For now, we think that is a minimal risk but the probability of this scenario and continued tensions with the EU over the next few months will act as a weight on the GBP.”

 

 

COMMODITIES

 

 

Oil prices plunge into close, roiled by inflation fears

 

Oil prices slumped on Thursday, hit by a surge in the dollar after U.S. President Joe Biden said his administration was looking for ways to reduce energy costs amid a broader surge in inflation. Brent and U.S. crude futures dropped sharply at the end of the session as traders sold out of riskier assets, including stocks and commodities, driven by expectations that central bankers will take steps to curb rising prices.

 

Gold Hits 5-Month Highs as U.S. Inflation Takes Center Stage

 

After months of frustration about the hapless state of the gold market versus the soaring real price for goods and services in the United States, those long bullion achieved redemption as the yellow metal hit a five-month high above $1,870 an ounce on Wednesday.

 

 

STOCKS

 

 

Wall Street extends sell-off on fears of longer-term inflation wave

 

Wall Street lost ground on Wednesday as surging consumer prices fueled fears of a longer-than-expected wave of heightened inflation dampened investor risk appetite. All three major U.S. stock indexes were in negative territory, extending their losses and adding to Tuesday’s sell-off which snapped the S&P 500’s and Nasdaq’s eight-session runs of all-time closing highs.

 

Rivian Stock Surges in Closely Watched IPO

 

Rivian Automotive Inc (RIVN) made a strong start to life as a public company on Wednesday, with its shares soaring on its debut. In what is one of the largest IPOs ever, the American electric vehicle company priced its offering at $78, which was above the anticipated $72 to $74 range. However, the stock's first trade was at $106.75, almost 37% above the IPO price. At the opening price, it's market value was greater than that of Ford and General Motors.

 

 

CHART

 

 

Euro / US dollar – 4 hour Candlesticks

Source: GKFX Prime Metatrader 4

EUR/USD has broken below major price support at 1.15 and has fallen into oversold territory on the 4-hour RSI, implying a bearish trend. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/forex-today-dollar-wins-as-inflation-fears-return-202111101955
https://www.investing.com/news/stock-market-news/rivian-stock-surges-in-closely-watched-ipo-2675443
https://www.investing.com/news/commodities-news/oil-climbs-on-surprise-us-crude-stocks-decline-2674281
https://www.investing.com/news/commodities-news/gold-hits-5month-highs-as-us-inflation-takes-center-stage-2675359
https://www.reuters.com/article/usa-stocks/us-stocks-wall-street-extends-sell-off-on-fears-of-longer-term-inflation-wave-idUSL1N2S12IP