Daily Alert – Wednesday 31st August 2022: Euro-zone inflation hits all-time high

Mark NugentAug 2022, Daily Alert

Daily Alert – Wednesday 31st August 2022: Euro-zone inflation hits all-time high

Good afternoon.

Euro-zone inflation hits an all-time high of 9.1 percent with energy and food being the main drivers. However, looking at core inflation, with energy and food removed, we see a rate of 4.3 percent, showing that price pressures are becoming more widespread within the economy.

Risk sentiment was moderately risk-off yesterday. Equities, the USD, and JPY all fell. The US 10-year yield was static.

I shorted GBPUSD as it continued down after costing me 2 percent of my capital last week. It is a sound trade and I am not acting emotionally. Honestly.

I notice that WTI is falling for the second day. It is getting close to the entry price of two recent, successful trades (trades 32 and 36). I will trade it long again when it has finished falling.

Risk sentiment as I write (1pm, BST) is indecisive. Later today we have Canadian GDP and the US government’s EIA Oil Inventories.

Later tonight, I will be watching oil closely.

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