Daily Alert – Thursday 14th July 2022: US CPI supports hawkish Fed

Mark NugentDaily Alert, July 2022

Daily Alert – Thursday 14th July 2022: US CPI supports hawkish Fed

Good morning.

US CPI beat expectations. Inflation hit a 40-year high and will bolster the Fed’s already hawkish positioning. The USD rose (after some up and down shenanigans at the time of the announcement).

A draft report by the European Commission said that the euro-area’s rebound from the pandemic will be weaker than anticipated while inflation will be faster because of Russia’s war in Ukraine. They forgot to mention the central bank’s tardiness in raising rates as a contributing factor.

Adding to the hawkish (panicky?) mood was the Reserve Bank of Canada’s surprise 100 basis-point hike versus an expected 75 basis-point increase.

I am watching GBPUSD and EURUSD carefully as well as WTI which is loitering at support.

Have a good weekend when it comes, and I’ll be back on Monday.

VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE