- Equity markets extend gains on Monday.
- Commodities rise again and trade at daily highs.
- Dollar pulls back, DXY falls more than 0.50%.
- Market expectant for Tuesday’s inflation data from the US.
The futures of the main Wall Street indices point to a positive opening and to continue rising. In Europe, the main stock markets climb more than 1%. The dollar falls, and oil and metals advance again.
Everything in green, except the dollar
The S&P rose 1.53% on Friday and in Monday’s preview it is gaining 0.49%, for starting at highs in two weeks. In Europe, in London the FTSE 100 rises 1.23%, in Paris the CAC 40 gains 1.15% and in Frankfurt the DAX advances 1.47%.
The better global climate in the stock markets is also boosting the prices of raw materials. Oil prices rise around 1% and are at daily highs. Gold is set to retest recent highs around $1730, and silver is at $19.27, highs since late August.
East context is negative for the dollar, which continues to retreat from its highest in decades, even despite the stability in the Treasury bond market. DXY falls 0.65% and got to operate below 108.00. EUR/USD trimmed gains after approaching 1.0200, while USD/JPY is stable around 142.70/80.
The Tuesday’s US inflation data is the next key event. The Consumer Price Index is expected to show a drop in August of 0.1%, taking the annual rate from 8.5% to 8.1%. This will be very important for the next meeting of the Federal Reserve to be held on September 20 and 21.
In the United Kingdom it was known that the economy returned to growth in July, expanding 0.2%, a figure that was below the 0.5% expected. This week’s meeting of the Bank of England was postponed by a week due to the death of Queen Elizabeth II. GBP/USD rises again on Monday and approaches 1.1700, while EUR/GBP slipped back to 0.8670, having hit highs since February 2020 at 0.8722.
The good tone also contributes to the rise in the cryptocurrencies. The Bitcoin it is at $22,300, in the zone of maximums in three weeks and Ethereum falls 0.25%. Shares rise 3% in premarket.
Among the companies that will present results on Monday are Oracle, PlanetLabs, and Deckers Outdoor.
Technical levels
Source: Fx Street
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