English (India)
13
Jan

U.S. Jobless Claims, ECB Economic Bulletin, U.S. PPI

calendar 13/01/2022 - 09:43 UTC

After some calm trading days at the end of last week and up to Tuesday this week, the USD/TRY pair was again on the move falling by more than three per cent on Wednesday but already by Thursday morning trading up again by roughly 2.5%.

For the second day in a row cryptos were performing quite strongly with Bitcoin at times managing to trade above $44k, while Ethereum touched on the $3.4k mark. With this recovery many major cryptos like Bitcoin, Cardano and Ripple are trading in the green on a rolling seven day basis, while Ethereum is within that timeframe one of the weakest performers despite the Bitcoin/Ethereum rate dropping for the second day in a row.

Major stock market indices in the U.S. and Europe like the US 500 and the Europe 50 traded only moderately higher on Wednesday, while some other markets like the Hong Kong 50, South Africa 40 and the Mexico 35 made strong gains that day. With markets still upbeat, the Volatility Index VIX in the continuously rolling CFD contract touched on the lowest level in almost two months, though it should be noted that this comes less than a week before the expiry of the January futures contract.

On Thursday the European Central Bank (ECB) publishes its Economic Bulletin. From the U.S, monthly producer price index (PPI) data as well as the weekly initial jobless claims can be expected. After the high inflation on consumer prices, many analysts also expect that the PPI will further increase from the 9.6% gain (y/y) seen in the previous month.

EUR/USD

Despite all expectations that the FOMC will in the near future decide to further tighten monetary policy, the dollar significantly weakened around the time the monthly consumer price index (CPI) reading for the U.S. was presented as its jumped to 7% year-on-year growth, the highest rate of inflation in roughly 40 years.

With that the EUR/USD pair jumped higher to a new eight weeks high despite a fairly mixed performance for the euro itself as it traded weaker against some other majors like the CHF, AUD and NZD.

EUR/USD

Gold

Gold was up on Wednesday for the fourth trading day in a row, recovering from the initial intraday losses rapidly around the time the relatively high CPI reading was published. Silver and platinum prices also moved to the upside, while palladium tumbled along lower, trading now clearly in the red for this week.

Gold

WTI Oil

Oil prices were up for the second day in a row with the total performance of the WTI crude oil CFD by the end of the day on Wednesday being more than +5.3%. Oil was moving already higher on the high inflation reading and continued with the positive momentum around the time of the weekly inventory announcement by the Energy Information Administration (EIA). While a high increase in gasoline stockpiles was also confirmed by EIA data after the API release a day earlier showed stockpiles up by more than ten million barrels over the past reporting week, EIA data indicated only an 8 million barrels build. Additionally crude oil stockpiles fell significantly by 4.6 million barrels according to the EIA release.

WTI Oil

US 500

Major stock market indices like the US 500 and US Tech 100 index continued moving higher while the VIX continued to dip lower. Especially chip stocks (US Semiconductors ETF +0.96%) were up, while biotech stocks (US Biotech -1.23%) traded weaker continuing to significantly underperform compared to the US 500 index for this year.

Take-Two Interactive (+5.06%) was one of the best-performing components of the S&P 500 index on Wednesday, though on a weekly basis the stock is still down significantly compared to the price it was trading at before the Zynga (+3.39%) takeover bid. Zynga is meanwhile up by around 52% compared to the closing rate of last week.

On Thursday quarterly results will be published by Delta Air Lines, followed on Friday by Wells Fargo, JPMorgan Chase and Citigroup. As usual in the following weeks even more earnings should be expected.

US 500

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