Dollar rises before key CPI data

“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” - Warren Buffett

 

 

 

HEADLINES

 

 

 

• Dollar gains, equity rally stalls as caution returns
• Dollar waits on CPI, yuan bounces back from policy knock
• Oil prices sit tight, tracking biggest weekly gain since late Aug
• Gold prices settle lower after back-to-back session gains
• S&P 500 Slips as Caution Sets in Ahead of Inflation Report
• Asian shares slip ahead of key U.S. inflation data

 

 

 

FOREX

 

 

 

Dollar gains, equity rally stalls as caution returns

 

The dollar edged higher against a basket of currencies as a warning from the International Monetary Fund's chief economist added to concerns about Omicron and tempered the appetite for currencies and other assets considered "risky."

The pandemic could turn out far more costly than estimated, but central banks do not have the space to keep monetary policy loose and interest rates low as inflationary pressures build, the IMF's Gita Gopinath said in Geneva.

 

Dollar waits on CPI, yuan bounces back from policy knock

 

The dollar was firm on Friday as traders wagered U.S. inflation figures could settle the course of interest rate rises next year, while the Chinese yuan regained its footing after being knocked back by official policy.

The euro, seen as vulnerable to a Federal Reserve hike especially if European rate rises lag, dropped 0.4% on Thursday and was steady in Asia at $1.1297.

 

 

COMMODITIES

 

 

Oil prices sit tight, tracking biggest weekly gain since late Aug

 

Oil prices drifted in a narrow range on Friday, on track to their biggest weekly gain since late August, as the easing concerns over the Omicron coronavirus variant on global growth and fuel demand drove market sentiment.

Benchmark Brent and WTI were both on course to rise more than 6% this week, even after a brief profit-taking, their first weekly gain in seven weeks.

 

Gold prices settle lower after back-to-back session gains

 

Gold futures settled lower on Thursday for the first time in three sessions, with strength in the U.S. dollar pressuring prices for the precious metal, as easing worries surrounding the omicron variant of the coronavirus dulled haven demand. Traders have not increased investments in gold given that fears surrounding the omicron variant of the coronavirus have eased.

 

 

STOCKS

 

 

S&P 500 Slips as Caution Sets in Ahead of Inflation Report

 

The S&P 500 slipped Thursday following a three-day rally as investors weighed up positive labor market data ahead of Friday's inflation report that could intensify expectations for a faster pace of Federal Reserve monetary policy tightening.

 

Asian shares slip ahead of key U.S. inflation data

 

Asian shares slipped and the dollar held firm on Friday as traders edged away from riskier assets amid renewed concerns about COVID-19 and ahead of key U.S. inflation data that could set direction on Federal Reserve rates.

 

 

CHART

 

 

Hong Kong Shares – Weekly Candlesticks

Source: GKFX Prime Metatrader 4

HK shares are rebounding off long-term support from the low of March 2020 and the bottom of a down-sloping channel with bullish RSI divergence. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.investing.com/news/commodities-news/oil-prices-slip-on-profittaking-but-head-for-strong-weekly-gain-2706664
https://www.investing.com/news/stock-market-news/sp-500-slips-as-caution-sets-in-ahead-of-inflation-report-2706428
https://www.investing.com/news/economy/hope-rally-turns-choppy-as-hot-us-inflation-looms-2705104
https://www.investing.com/news/economy/dollar-firms-ahead-of-us-inflation-data-pboc-clips-yuans-wings-2706641
https://www.marketwatch.com/story/gold-stumbles-lower-thursday-as-dollar-strengthens-11639056553?mod=mw_latestnews