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Forex Today: British, Canadian Inflation Data Close to Expectations

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.

The release of British and Canadian inflation data showed inflation increasing, but there was little to no overshoot of expectations.

  • Yesterday saw releases of CPI (inflation) data in the UK and Canada. Annualized inflation in the UK is now running at 9.1%, a new 40-year high, but is at the rate which analysts had been expecting. The Pound fell after the data release. In Canada, CPI data came in higher than expected to give a new higher annualized rate of 6.8% with a month on month increase of 0.6%.
  • Global stock markets saw sharp falls yesterday on renewed global growth fears, with the S&P 500 closing well below 4,000 on a fall of approximately 4%. The NASDAQ 100 Index fell by about 5%, and Asian markets are now closing well down on the day. US stock markets are in a long-term bearish trend, so are likely to fall further over the coming days.

  • In the Forex market, the Japanese Yen is the weakest currency while the Australian Dollar is the strongest, but this is a short-term movement that may well not persist. The US Dollar seems to have made some kind of peak from which it is retreating.
  • Bitcoin/USD has survived a test from above of the strong key support level at $28,607 which continues to hold. This suggests we may now see upwards price movement.
  • Yesterday’s release of Australian Unemployment data showed an unemployment rate of 3.9% which had been expected.
  • Daily new coronavirus cases globally fell last week for the eighth consecutive week.
  • It is estimated that 65.7% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 6.6% of the global population is confirmed to have contracted the virus at some time, although the true number is highly likely to be much larger.
  • Total confirmed new coronavirus cases worldwide stand at over 525 million with an average case fatality rate of 1.20%.
  • The rate of new coronavirus infections appears to now be significantly increasing only in Australia, Portugal, South Africa, and Taiwan.
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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