GE to breakup, markets await CPI data

"The road to success and the road to failure are almost exactly the same." - Colin R. Davis

 

 

HEADLINES

 

 

• Dollar dips before U.S. inflation data
• Euro/dollar treads water as traders wait for more clues on rates
• Oil Nears 7-Year Highs as U.S. Reopens International Travel
• Gold tracks dollar in choppy session; U.S. inflation data awaited
• Wall Street declines, ending a run of record highs
• GE, an industrial conglomerate pioneer, to break up 
• Five reasons to expect US inflation to take another sharp leg higher – Nordea

 

 

FOREX

 

 

Dollar dips before U.S. inflation data

 

The dollar index dipped in choppy trading on Tuesday as investors awaited data on Wednesday that will be the next major indicator of whether rising price pressures are accelerating. U.S. producer prices increased solidly in October, data showed on Tuesday, indicating that high inflation could persist for a while amid tight supply chains related to the pandemic. But traders were holding back on big moves ahead of consumer price index data due on Wednesday morning.

 

Euro/dollar treads water as traders wait for more clues on rates

 

The euro held steady against the dollar on Tuesday and most currency pairs were stuck as traders waited for U.S. inflation data later in the week and more speeches from central bank governors for some clues on the direction of interest rates. After central banks sought to push back against rising rate hike expectations last week, sending the euro and the pound tumbling, currency markets have settled back into another spell of low volatility.

 

 

COMMODITIES

 

 

Oil Nears 7-Year Highs as U.S. Reopens International Travel

 

U.S. oil prices returned to near seven-year highs on Tuesday as bulls in the market seized upon the White House’s reopening of the country’s borders for international travel as a sign of explosive demand ahead for jet fuel. An estimate by industry analysts, meanwhile, that domestic stockpiles of crude in the country had possibly grown for a sixth time in seven weeks went largely ignored.

 

Gold tracks dollar in choppy session; U.S. inflation data awaited

 

Gold prices climbed to their highest level since early September on Tuesday in tandem with a softer dollar, as investors awaited U.S. inflation data scheduled for later in the week. The U.S. dollar, which gold has been tracking through the session, inched lower against its rivals, making the bullion less expensive for holders of other currencies.

 

 

STOCKS

 

 

Wall Street declines, ending a run of record highs

 

Wall Street slid on Tuesday, bringing a multi-day rally of straight record closing highs to a close as profit-taking and worries over ongoing inflation fueled a broad sell-off. All three major U.S. stock indexes were down, with the S&P 500 and the Nasdaq setting a course to snap their winning streak of eight consecutive record closing highs. 

 

GE, an industrial conglomerate pioneer, to break up 

 

General Electric (NYSE:GE) will split into three public companies as the storied U.S. industrial conglomerate seeks to simplify its business, pare down debt and breathe life into a battered share price, the company said on Tuesday. The split marks the end of the 129-year-old conglomerate that was once the most valuable U.S. corporation and a global symbol of American business power.

 

 

ANALYSIS

 

 

Five reasons to expect US inflation to take another sharp leg higher – Nordea

 

 

1. Broad wage growth leads to higher median prices
2. Prices on used cars are surging again
3. Rent of shelter inflation is picking up the pace
4. The energy to food price feedback loop
5. Vaccine mandate and restrictions to prolong supply issues

 

 

CHART

 

 

Gold – Daily Candlesticks

Source: GKFX Prime Metatrader 4

 

 

XAU/USD is testing price resistance at 1830, while RSI resistance at 60 has already broken in a possible precursor to an upside break in the price. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/article/global-forex/forex-dollar-dips-before-u-s-inflation-data-idUSL1N2S02DG
https://www.investing.com/news/commodities-news/oil-nears-7year-highs-as-us-reopens-international-travel-2673817
https://www.investing.com/news/stock-market-news/ge-to-form-three-public-companies-2673046
https://www.fxstreet.com/news/five-reasons-to-expect-us-inflation-to-take-another-sharp-leg-higher-nordea-202111091056
https://au.finance.yahoo.com/news/forex-euro-dollar-treads-water