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Forex Today: British, Canadian Inflation Hit 30-Year Highs

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Higher than expected inflation data in the UK and Canada show G7 inflation still accelerating.

  • British CPI shows annualized inflation at 5.5% compared to an expected 5.4% while Canadian CPI has inflation at 5.1%. These are 30-year highs for both countries. The data had little impact on the British pound or Canadian dollar.

  • Reports that Ukrainian forces have fired on Russian separatists within Ukraine, causing casualties, have raised tensions somewhat and may be putting some risk-off chill into stock markets again.
  • The Federal Reserve’s FOMC Meeting Minutes released yesterday revealed no information that was new and important.
  • US Retail Sales data came in considerably higher than had been expected, showing a 3.8% month on month increase compared to the consensus forecast of 2.1%.
  • The Forex market remains relatively quiet. Over the short-term the British pound is the strongest currency, while the Canadian dollar is the weakest.
  • The agricultural commodities sector is performing strongly, with foodstuffs such as corn and soybeans close to long-term highs after continuing to advance yesterday.
  • Daily new coronavirus cases globally seem to have peaked four weeks ago, suggesting that the omicron variant wave may have already peaked worldwide.
  • It is estimated that 61.9% of the world’s population has received at least one dose of a coronavirus vaccination.
  • Total confirmed new coronavirus cases worldwide stand at over 418.1 million with an average case fatality rate of 1.40%.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Belarus, Bhutan, Brunei, Burma, Chile, Denmark, Guatemala, Iceland, Jordan, South Korea, Latvia, Malaysia, New Zealand, Norway, Russia, Singapore, Slovakia, Thailand, Vietnam, and the Ukraine.
Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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