- The dollar rises on all fronts, given the decline in equity markets.
- Metals and cryptocurrencies cannot recover ground.
- Stocks fall in the Wall Street premarket.
Equity markets are mostly in negative territory with Wall Street futures down 0.57% on average. Fears of a recession continue, although somewhat lessened after Friday’s US employment data. The key figure this week will be inflation on Wednesday.
weak start to the week
Wall Street on Friday closed without significant changes after the June employment report. This week the key data will be June inflation on Wednesday. Investors remain concerned about the possibility of a recession in the US and Europe. In addition, the announcements of restrictions in several cities in China added to the negative climate. In Europe, the FTSE 100 fell 0.39%, while the DXY fell 0.75%. The S&P 500 futures lost 0.55%, those of the Nasdaq 0.75% and those of the DJIA fell 0.43%.
In China it became known on Saturday that the annual rate of the consumer price index rose more than expected to 2.5% in June from 2.1%. The economic calendar is calm at the beginning of the week. On Monday, Andrew Bailey, Governor of the Bank of England, will speak before a parliamentary committee, while Joachim Nagel of the European Central Bank and John Williams of the New York Fed will speak in public. The Treasury will place 3-year debt.
The treasury bond yields are falling on Monday, with the 10-year yield at 3.06% and the 30-year at 3.23%. The German 10-year benchmark is at 1.29%.
The dollar is among the best performing currencies. DXY approached decades high rising above 107.60, EUR/USD is one step back below 1.0100, GBP/USD lost 1.2000 again, while USD/JPY broke above 137.00 hitting new cycle highs. Greenback gains are also taking place against emerging market currencies.
As he Prayed Like silver, they continue to trend negatively, holding close to their lows in months. The XAU/USD it is around $1735 and XAG/USD is at $19.20. Oil prices lose more than 2%. Russia has cut off gas supplies to parts of Europe for a maintenance operation on the Nord Stream 1 pipeline.
The cryptocurrencies they continue to navigate in pessimism. The Bitcoin failed to return above $22,000 and is falling for the second day in a row and trading at $20,500.
The actions of Twitter They fell 6% in the premarket, after losing 5% on Friday. Elon Musk backed out of buying the company, accusing it of misreading the data. In one year the price fell 45%. Tesla rises 0.65% in the previous one. Those of Alibaba lose more than 3% and those of Meta Platforms 2.30%. On Monday they report National Grip and Cosmos, among others.
Technical levels
Source: Fx Street
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