Month: August 2022

Sponsoring the grand opening of Erimi Community Center

Posted on by Exclusive Capital Team

The event will take place at Erimi Community Stadium on Saturday, September 10, at 20:30 under the auspices of the Minister of Transport, Communications and Works, Mr. Yannis Karousos. It will be followed by a fantastic concert in the Erimi Community Stadium with performances by the famous Greek singers Nikos Kourkoulis and Kelly Kelekidou.

Tickets are available on SoldOut Tickets bit.ly/3JCVbIo

At Exclusive Capital, we are thrilled and honoured to be sponsoring the fundraising concert organized by Erimi Community Council for the grand opening of Erimi Community Centre.

The event will take place at Erimi Community Stadium on Saturday, September 10, at 20:30 under the auspices of the Minister of Transport, Communications and Works, Mr. Yannis Karousos. It will be followed by a fantastic concert in the Erimi Community Stadium with performances by the famous Greek singers Nikos Kourkoulis and Kelly Kelekidou.

Tickets are available on SoldOut Tickets bit.ly/3JCVbIo

At Exclusive Capital, we are thrilled and honoured to be sponsoring the fundraising concert organized by Erimi Community Council for the grand opening of Erimi Community Centre.

The event will take place at Erimi Community Stadium on Saturday, September 10, at 20:30 under the auspices of the Minister of Transport, Communications and Works, Mr. Yannis Karousos. It will be followed by a fantastic concert in the Erimi Community Stadium with performances by the famous Greek singers Nikos Kourkoulis and Kelly Kelekidou.

Tickets are available on SoldOut Tickets bit.ly/3JCVbIo

June CPI report was bullish

Posted on by George Kessarios

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

That gave the market confidence that further interest rates hikes might not be necessary. However, this is not the case for Fed members. Minneapolis Fed President Neel Kashkari rushed to say “the Fed is far far far away from declaring victory on inflation”. He also noted that he expects to see rates at 3.9% by the end of 2022 and 4.4% by the end of 2023! San Francisco Federal Reserve Bank President Mary Daly said on Thursday that while a half-percentage-point interest rate hike in September “makes sense,” she is open to the possibility of a bigger hike to fight too-high inflation. Bigger meaning 75 basis points.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

The reason for the 0% M/M print was the same reason for the high inflation in the first place, and that was energy. Energy for June fell by 4.6% with gasoline prices in the US falling about 7.6% and fuel oil falling by 11%.

That gave the market confidence that further interest rates hikes might not be necessary. However, this is not the case for Fed members. Minneapolis Fed President Neel Kashkari rushed to say “the Fed is far far far away from declaring victory on inflation”. He also noted that he expects to see rates at 3.9% by the end of 2022 and 4.4% by the end of 2023! San Francisco Federal Reserve Bank President Mary Daly said on Thursday that while a half-percentage-point interest rate hike in September “makes sense,” she is open to the possibility of a bigger hike to fight too-high inflation. Bigger meaning 75 basis points.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

The reason for the 0% M/M print was the same reason for the high inflation in the first place, and that was energy. Energy for June fell by 4.6% with gasoline prices in the US falling about 7.6% and fuel oil falling by 11%.

That gave the market confidence that further interest rates hikes might not be necessary. However, this is not the case for Fed members. Minneapolis Fed President Neel Kashkari rushed to say “the Fed is far far far away from declaring victory on inflation”. He also noted that he expects to see rates at 3.9% by the end of 2022 and 4.4% by the end of 2023! San Francisco Federal Reserve Bank President Mary Daly said on Thursday that while a half-percentage-point interest rate hike in September “makes sense,” she is open to the possibility of a bigger hike to fight too-high inflation. Bigger meaning 75 basis points.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

The reason for the 0% M/M print was the same reason for the high inflation in the first place, and that was energy. Energy for June fell by 4.6% with gasoline prices in the US falling about 7.6% and fuel oil falling by 11%.

That gave the market confidence that further interest rates hikes might not be necessary. However, this is not the case for Fed members. Minneapolis Fed President Neel Kashkari rushed to say “the Fed is far far far away from declaring victory on inflation”. He also noted that he expects to see rates at 3.9% by the end of 2022 and 4.4% by the end of 2023! San Francisco Federal Reserve Bank President Mary Daly said on Thursday that while a half-percentage-point interest rate hike in September “makes sense,” she is open to the possibility of a bigger hike to fight too-high inflation. Bigger meaning 75 basis points.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

The reason for the 0% M/M print was the same reason for the high inflation in the first place, and that was energy. Energy for June fell by 4.6% with gasoline prices in the US falling about 7.6% and fuel oil falling by 11%.

That gave the market confidence that further interest rates hikes might not be necessary. However, this is not the case for Fed members. Minneapolis Fed President Neel Kashkari rushed to say “the Fed is far far far away from declaring victory on inflation”. He also noted that he expects to see rates at 3.9% by the end of 2022 and 4.4% by the end of 2023! San Francisco Federal Reserve Bank President Mary Daly said on Thursday that while a half-percentage-point interest rate hike in September “makes sense,” she is open to the possibility of a bigger hike to fight too-high inflation. Bigger meaning 75 basis points.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

The reason for the 0% M/M print was the same reason for the high inflation in the first place, and that was energy. Energy for June fell by 4.6% with gasoline prices in the US falling about 7.6% and fuel oil falling by 11%.

That gave the market confidence that further interest rates hikes might not be necessary. However, this is not the case for Fed members. Minneapolis Fed President Neel Kashkari rushed to say “the Fed is far far far away from declaring victory on inflation”. He also noted that he expects to see rates at 3.9% by the end of 2022 and 4.4% by the end of 2023! San Francisco Federal Reserve Bank President Mary Daly said on Thursday that while a half-percentage-point interest rate hike in September “makes sense,” she is open to the possibility of a bigger hike to fight too-high inflation. Bigger meaning 75 basis points.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

To begin with, on a M/M basis inflation for the month of June in the US was 0%. As the chart below depicts, wit the exception of the short recession of 2020 (because of covid) this is one of the very few times over the past 5 years that M/M inflation was 0%.

The reason for the 0% M/M print was the same reason for the high inflation in the first place, and that was energy. Energy for June fell by 4.6% with gasoline prices in the US falling about 7.6% and fuel oil falling by 11%.

That gave the market confidence that further interest rates hikes might not be necessary. However, this is not the case for Fed members. Minneapolis Fed President Neel Kashkari rushed to say “the Fed is far far far away from declaring victory on inflation”. He also noted that he expects to see rates at 3.9% by the end of 2022 and 4.4% by the end of 2023! San Francisco Federal Reserve Bank President Mary Daly said on Thursday that while a half-percentage-point interest rate hike in September “makes sense,” she is open to the possibility of a bigger hike to fight too-high inflation. Bigger meaning 75 basis points.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

To begin with, on a M/M basis inflation for the month of June in the US was 0%. As the chart below depicts, wit the exception of the short recession of 2020 (because of covid) this is one of the very few times over the past 5 years that M/M inflation was 0%.

The reason for the 0% M/M print was the same reason for the high inflation in the first place, and that was energy. Energy for June fell by 4.6% with gasoline prices in the US falling about 7.6% and fuel oil falling by 11%.

That gave the market confidence that further interest rates hikes might not be necessary. However, this is not the case for Fed members. Minneapolis Fed President Neel Kashkari rushed to say “the Fed is far far far away from declaring victory on inflation”. He also noted that he expects to see rates at 3.9% by the end of 2022 and 4.4% by the end of 2023! San Francisco Federal Reserve Bank President Mary Daly said on Thursday that while a half-percentage-point interest rate hike in September “makes sense,” she is open to the possibility of a bigger hike to fight too-high inflation. Bigger meaning 75 basis points.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

June’s CPI print last Wednesday came in at 8.5% Y/Y, slightly shy of 8.7% estimated by economists. Markets were excited by the report and rallied. In fact, I think the CPI report was more bullish than the financial media gave it credit for.

To begin with, on a M/M basis inflation for the month of June in the US was 0%. As the chart below depicts, wit the exception of the short recession of 2020 (because of covid) this is one of the very few times over the past 5 years that M/M inflation was 0%.

The reason for the 0% M/M print was the same reason for the high inflation in the first place, and that was energy. Energy for June fell by 4.6% with gasoline prices in the US falling about 7.6% and fuel oil falling by 11%.

That gave the market confidence that further interest rates hikes might not be necessary. However, this is not the case for Fed members. Minneapolis Fed President Neel Kashkari rushed to say “the Fed is far far far away from declaring victory on inflation”. He also noted that he expects to see rates at 3.9% by the end of 2022 and 4.4% by the end of 2023! San Francisco Federal Reserve Bank President Mary Daly said on Thursday that while a half-percentage-point interest rate hike in September “makes sense,” she is open to the possibility of a bigger hike to fight too-high inflation. Bigger meaning 75 basis points.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

June’s CPI print last Wednesday came in at 8.5% Y/Y, slightly shy of 8.7% estimated by economists. Markets were excited by the report and rallied. In fact, I think the CPI report was more bullish than the financial media gave it credit for.

To begin with, on a M/M basis inflation for the month of June in the US was 0%. As the chart below depicts, wit the exception of the short recession of 2020 (because of covid) this is one of the very few times over the past 5 years that M/M inflation was 0%.

The reason for the 0% M/M print was the same reason for the high inflation in the first place, and that was energy. Energy for June fell by 4.6% with gasoline prices in the US falling about 7.6% and fuel oil falling by 11%.

That gave the market confidence that further interest rates hikes might not be necessary. However, this is not the case for Fed members. Minneapolis Fed President Neel Kashkari rushed to say “the Fed is far far far away from declaring victory on inflation”. He also noted that he expects to see rates at 3.9% by the end of 2022 and 4.4% by the end of 2023! San Francisco Federal Reserve Bank President Mary Daly said on Thursday that while a half-percentage-point interest rate hike in September “makes sense,” she is open to the possibility of a bigger hike to fight too-high inflation. Bigger meaning 75 basis points.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

June’s CPI print last Wednesday came in at 8.5% Y/Y, slightly shy of 8.7% estimated by economists. Markets were excited by the report and rallied. In fact, I think the CPI report was more bullish than the financial media gave it credit for.

To begin with, on a M/M basis inflation for the month of June in the US was 0%. As the chart below depicts, wit the exception of the short recession of 2020 (because of covid) this is one of the very few times over the past 5 years that M/M inflation was 0%.

The reason for the 0% M/M print was the same reason for the high inflation in the first place, and that was energy. Energy for June fell by 4.6% with gasoline prices in the US falling about 7.6% and fuel oil falling by 11%.

That gave the market confidence that further interest rates hikes might not be necessary. However, this is not the case for Fed members. Minneapolis Fed President Neel Kashkari rushed to say “the Fed is far far far away from declaring victory on inflation”. He also noted that he expects to see rates at 3.9% by the end of 2022 and 4.4% by the end of 2023! San Francisco Federal Reserve Bank President Mary Daly said on Thursday that while a half-percentage-point interest rate hike in September “makes sense,” she is open to the possibility of a bigger hike to fight too-high inflation. Bigger meaning 75 basis points.

But no one really believes the Fed or the ECB anymore. Remember both reneged on their forward guidance, both stopped giving forward guidance, and the Fed now is obsessed on CPI instead of core inflation data. And both have said they will be relying on incoming data to make any decisions. At least that’s what they say. So, assuming they keep to their word this time, and also assuming inflation prints in the next several quarters come in lower than expected, then we also have to assume current Central Bank tightening policies have to pause, if not reverse.

The bottom line is that June’s US CPI data was not only bullish because it might mean lower inflation in the future, but also a pause or even a reversal of Central Bank policies. And that is bullish for risk assets, especially equities.

Tech heavy Nasdaq Composite enters a bull market territory

Posted on by Vrasidas Neofytou

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

However, the Nasdaq has done a strong comeback over the last four weeks, officially entering a new bull market on Wednesday after settling above the 12,850 level for the first time since early May, or nearly 21% above its mid-June low.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

However, the Nasdaq has done a strong comeback over the last four weeks, officially entering a new bull market on Wednesday after settling above the 12,850 level for the first time since early May, or nearly 21% above its mid-June low.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

The tech-heavy index has been in the bear-market territory for 108 trading days, which would be the longest bear market since the one ending in December 2008. The index had tumbled into a bear market in March, after dropping 20% from its all-time highs in late November 2021.

However, the Nasdaq has done a strong comeback over the last four weeks, officially entering a new bull market on Wednesday after settling above the 12,850 level for the first time since early May, or nearly 21% above its mid-June low.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

The tech-heavy index has been in the bear-market territory for 108 trading days, which would be the longest bear market since the one ending in December 2008. The index had tumbled into a bear market in March, after dropping 20% from its all-time highs in late November 2021.

However, the Nasdaq has done a strong comeback over the last four weeks, officially entering a new bull market on Wednesday after settling above the 12,850 level for the first time since early May, or nearly 21% above its mid-June low.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

Nasdaq Composite has been the worst performing of the three major U.S. market indexes this year, plunging from the 16,500 level at the beginning of January to as low as 11,000 on June 16, down nearly 35%, amid the 41-year record-high inflation, the higher interest rates, and the recession fears.

The tech-heavy index has been in the bear-market territory for 108 trading days, which would be the longest bear market since the one ending in December 2008. The index had tumbled into a bear market in March, after dropping 20% from its all-time highs in late November 2021.

However, the Nasdaq has done a strong comeback over the last four weeks, officially entering a new bull market on Wednesday after settling above the 12,850 level for the first time since early May, or nearly 21% above its mid-June low.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

Nasdaq Composite has been the worst performing of the three major U.S. market indexes this year, plunging from the 16,500 level at the beginning of January to as low as 11,000 on June 16, down nearly 35%, amid the 41-year record-high inflation, the higher interest rates, and the recession fears.

The tech-heavy index has been in the bear-market territory for 108 trading days, which would be the longest bear market since the one ending in December 2008. The index had tumbled into a bear market in March, after dropping 20% from its all-time highs in late November 2021.

However, the Nasdaq has done a strong comeback over the last four weeks, officially entering a new bull market on Wednesday after settling above the 12,850 level for the first time since early May, or nearly 21% above its mid-June low.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

Nasdaq Composite, Daily chart

Nasdaq Composite has been the worst performing of the three major U.S. market indexes this year, plunging from the 16,500 level at the beginning of January to as low as 11,000 on June 16, down nearly 35%, amid the 41-year record-high inflation, the higher interest rates, and the recession fears.

The tech-heavy index has been in the bear-market territory for 108 trading days, which would be the longest bear market since the one ending in December 2008. The index had tumbled into a bear market in March, after dropping 20% from its all-time highs in late November 2021.

However, the Nasdaq has done a strong comeback over the last four weeks, officially entering a new bull market on Wednesday after settling above the 12,850 level for the first time since early May, or nearly 21% above its mid-June low.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

Nasdaq Composite, Daily chart

Nasdaq Composite has been the worst performing of the three major U.S. market indexes this year, plunging from the 16,500 level at the beginning of January to as low as 11,000 on June 16, down nearly 35%, amid the 41-year record-high inflation, the higher interest rates, and the recession fears.

The tech-heavy index has been in the bear-market territory for 108 trading days, which would be the longest bear market since the one ending in December 2008. The index had tumbled into a bear market in March, after dropping 20% from its all-time highs in late November 2021.

However, the Nasdaq has done a strong comeback over the last four weeks, officially entering a new bull market on Wednesday after settling above the 12,850 level for the first time since early May, or nearly 21% above its mid-June low.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

Nasdaq Composite, Daily chart

Nasdaq Composite has been the worst performing of the three major U.S. market indexes this year, plunging from the 16,500 level at the beginning of January to as low as 11,000 on June 16, down nearly 35%, amid the 41-year record-high inflation, the higher interest rates, and the recession fears.

The tech-heavy index has been in the bear-market territory for 108 trading days, which would be the longest bear market since the one ending in December 2008. The index had tumbled into a bear market in March, after dropping 20% from its all-time highs in late November 2021.

However, the Nasdaq has done a strong comeback over the last four weeks, officially entering a new bull market on Wednesday after settling above the 12,850 level for the first time since early May, or nearly 21% above its mid-June low.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

The investors who fancy the technology sector are glad to see the leading tech-heavy Nasdaq Composite entering bull-market territory this week after it bounced by more than 20% from its mid-June low, as the cooler than expected US July CPI inflation reading, and the falling dollar and bonds yields have improved the appetite for growth-related tech stocks.

Nasdaq Composite, Daily chart

Nasdaq Composite has been the worst performing of the three major U.S. market indexes this year, plunging from the 16,500 level at the beginning of January to as low as 11,000 on June 16, down nearly 35%, amid the 41-year record-high inflation, the higher interest rates, and the recession fears.

The tech-heavy index has been in the bear-market territory for 108 trading days, which would be the longest bear market since the one ending in December 2008. The index had tumbled into a bear market in March, after dropping 20% from its all-time highs in late November 2021.

However, the Nasdaq has done a strong comeback over the last four weeks, officially entering a new bull market on Wednesday after settling above the 12,850 level for the first time since early May, or nearly 21% above its mid-June low.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

The investors who fancy the technology sector are glad to see the leading tech-heavy Nasdaq Composite entering bull-market territory this week after it bounced by more than 20% from its mid-June low, as the cooler than expected US July CPI inflation reading, and the falling dollar and bonds yields have improved the appetite for growth-related tech stocks.

Nasdaq Composite, Daily chart

Nasdaq Composite has been the worst performing of the three major U.S. market indexes this year, plunging from the 16,500 level at the beginning of January to as low as 11,000 on June 16, down nearly 35%, amid the 41-year record-high inflation, the higher interest rates, and the recession fears.

The tech-heavy index has been in the bear-market territory for 108 trading days, which would be the longest bear market since the one ending in December 2008. The index had tumbled into a bear market in March, after dropping 20% from its all-time highs in late November 2021.

However, the Nasdaq has done a strong comeback over the last four weeks, officially entering a new bull market on Wednesday after settling above the 12,850 level for the first time since early May, or nearly 21% above its mid-June low.

Buy-the-dip trades:

The mid-June lows offered an excellent opportunity for tech investors that were looking for long-term opportunities to buy shares of the most valuable companies in the tech space, such as Amazon, Apple, Netflix, Microsoft, Intel, Nvidia, Cisco, Facebook, Alphabet, and others at much lower prices.

The tech shares have beaten down as the economic headwinds were hurting their growth-sensitive businesses, and deteriorating their future revenue outlook, but the tech giants are still well positioned to produce impressive returns in the long run for the investors, as they have done over the past few years.

The Nasdaq Composite and tech industry had benefited from the outbreak of the Covid pandemic in 2020, and the pandemic-driven growth as consumers shifted away from stores and offices due to social restrictions and moved towards e-commerce, online business, e-gaming, and online entertaining via their electronic devices.

Markets post sharp gains on a softer U.S. CPI inflation data

Posted on by Vrasidas Neofytou

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

Wednesday’s inflation numbers have increased the appetite for risk, with the tech-heavy Nasdaq Composite gaining 3% led by huge gains in tech giants, while the S&P 500 index added more than 2% led by construction and retail shares since both tech and economic growth asset classes are benefiting from the lower interest rates and the higher future cash flows.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

Wednesday’s inflation numbers have increased the appetite for risk, with the tech-heavy Nasdaq Composite gaining 3% led by huge gains in tech giants, while the S&P 500 index added more than 2% led by construction and retail shares since both tech and economic growth asset classes are benefiting from the lower interest rates and the higher future cash flows.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

The expectations of a less hawkish Federal Reserve have pushed the 10-year Treasury yields to as low as 2,75%, down about 75 basis points from their June peak of 3,50%, while the DXY-U.S. dollar index fell below 105 level, almost 4% down from multi-year highs of 109,3 on mid-July, as the softer CPI data dropped the Fed funds futures to a 43% probability of a 75-bps rate hike at the next FOMC meeting on September 21, down from 63% probability of pre-CPI data.

Wednesday’s inflation numbers have increased the appetite for risk, with the tech-heavy Nasdaq Composite gaining 3% led by huge gains in tech giants, while the S&P 500 index added more than 2% led by construction and retail shares since both tech and economic growth asset classes are benefiting from the lower interest rates and the higher future cash flows.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

The expectations of a less hawkish Federal Reserve have pushed the 10-year Treasury yields to as low as 2,75%, down about 75 basis points from their June peak of 3,50%, while the DXY-U.S. dollar index fell below 105 level, almost 4% down from multi-year highs of 109,3 on mid-July, as the softer CPI data dropped the Fed funds futures to a 43% probability of a 75-bps rate hike at the next FOMC meeting on September 21, down from 63% probability of pre-CPI data.

Wednesday’s inflation numbers have increased the appetite for risk, with the tech-heavy Nasdaq Composite gaining 3% led by huge gains in tech giants, while the S&P 500 index added more than 2% led by construction and retail shares since both tech and economic growth asset classes are benefiting from the lower interest rates and the higher future cash flows.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

The cooler CPI reading has raised traders’ hopes that the Federal Reserve may soon moderate the pace of its campaign of interest-rate increases, boosting the appetite for beaten-down assets such as growth stocks and cryptocurrencies, and adding pressure on the monetary-sensitive bond yields and dollar.

The expectations of a less hawkish Federal Reserve have pushed the 10-year Treasury yields to as low as 2,75%, down about 75 basis points from their June peak of 3,50%, while the DXY-U.S. dollar index fell below 105 level, almost 4% down from multi-year highs of 109,3 on mid-July, as the softer CPI data dropped the Fed funds futures to a 43% probability of a 75-bps rate hike at the next FOMC meeting on September 21, down from 63% probability of pre-CPI data.

Wednesday’s inflation numbers have increased the appetite for risk, with the tech-heavy Nasdaq Composite gaining 3% led by huge gains in tech giants, while the S&P 500 index added more than 2% led by construction and retail shares since both tech and economic growth asset classes are benefiting from the lower interest rates and the higher future cash flows.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

The cooler CPI reading has raised traders’ hopes that the Federal Reserve may soon moderate the pace of its campaign of interest-rate increases, boosting the appetite for beaten-down assets such as growth stocks and cryptocurrencies, and adding pressure on the monetary-sensitive bond yields and dollar.

The expectations of a less hawkish Federal Reserve have pushed the 10-year Treasury yields to as low as 2,75%, down about 75 basis points from their June peak of 3,50%, while the DXY-U.S. dollar index fell below 105 level, almost 4% down from multi-year highs of 109,3 on mid-July, as the softer CPI data dropped the Fed funds futures to a 43% probability of a 75-bps rate hike at the next FOMC meeting on September 21, down from 63% probability of pre-CPI data.

Wednesday’s inflation numbers have increased the appetite for risk, with the tech-heavy Nasdaq Composite gaining 3% led by huge gains in tech giants, while the S&P 500 index added more than 2% led by construction and retail shares since both tech and economic growth asset classes are benefiting from the lower interest rates and the higher future cash flows.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

The easing of inflation was based on the falling energy prices, with gasoline breaking below $4 a gallon, much lower than the peak of $5 a gallon on the pump a few weeks ago, following the drop of the U.S-based WTI crude oil prices below the $90/b level for the first time after the Russian invasion of Ukraine on late February.

The cooler CPI reading has raised traders’ hopes that the Federal Reserve may soon moderate the pace of its campaign of interest-rate increases, boosting the appetite for beaten-down assets such as growth stocks and cryptocurrencies, and adding pressure on the monetary-sensitive bond yields and dollar.

The expectations of a less hawkish Federal Reserve have pushed the 10-year Treasury yields to as low as 2,75%, down about 75 basis points from their June peak of 3,50%, while the DXY-U.S. dollar index fell below 105 level, almost 4% down from multi-year highs of 109,3 on mid-July, as the softer CPI data dropped the Fed funds futures to a 43% probability of a 75-bps rate hike at the next FOMC meeting on September 21, down from 63% probability of pre-CPI data.

Wednesday’s inflation numbers have increased the appetite for risk, with the tech-heavy Nasdaq Composite gaining 3% led by huge gains in tech giants, while the S&P 500 index added more than 2% led by construction and retail shares since both tech and economic growth asset classes are benefiting from the lower interest rates and the higher future cash flows.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

The easing of inflation was based on the falling energy prices, with gasoline breaking below $4 a gallon, much lower than the peak of $5 a gallon on the pump a few weeks ago, following the drop of the U.S-based WTI crude oil prices below the $90/b level for the first time after the Russian invasion of Ukraine on late February.

The cooler CPI reading has raised traders’ hopes that the Federal Reserve may soon moderate the pace of its campaign of interest-rate increases, boosting the appetite for beaten-down assets such as growth stocks and cryptocurrencies, and adding pressure on the monetary-sensitive bond yields and dollar.

The expectations of a less hawkish Federal Reserve have pushed the 10-year Treasury yields to as low as 2,75%, down about 75 basis points from their June peak of 3,50%, while the DXY-U.S. dollar index fell below 105 level, almost 4% down from multi-year highs of 109,3 on mid-July, as the softer CPI data dropped the Fed funds futures to a 43% probability of a 75-bps rate hike at the next FOMC meeting on September 21, down from 63% probability of pre-CPI data.

Wednesday’s inflation numbers have increased the appetite for risk, with the tech-heavy Nasdaq Composite gaining 3% led by huge gains in tech giants, while the S&P 500 index added more than 2% led by construction and retail shares since both tech and economic growth asset classes are benefiting from the lower interest rates and the higher future cash flows.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

The CPI-consumer price index, which tracks the prices that consumers pay for a variety of goods and services rose 8.5% in July from a year ago, which was lower than market expectations of an increase of 8,7%, and much lower than June’s reading of 9,1%, the highest inflation level since the early 1980s.

The easing of inflation was based on the falling energy prices, with gasoline breaking below $4 a gallon, much lower than the peak of $5 a gallon on the pump a few weeks ago, following the drop of the U.S-based WTI crude oil prices below the $90/b level for the first time after the Russian invasion of Ukraine on late February.

The cooler CPI reading has raised traders’ hopes that the Federal Reserve may soon moderate the pace of its campaign of interest-rate increases, boosting the appetite for beaten-down assets such as growth stocks and cryptocurrencies, and adding pressure on the monetary-sensitive bond yields and dollar.

The expectations of a less hawkish Federal Reserve have pushed the 10-year Treasury yields to as low as 2,75%, down about 75 basis points from their June peak of 3,50%, while the DXY-U.S. dollar index fell below 105 level, almost 4% down from multi-year highs of 109,3 on mid-July, as the softer CPI data dropped the Fed funds futures to a 43% probability of a 75-bps rate hike at the next FOMC meeting on September 21, down from 63% probability of pre-CPI data.

Wednesday’s inflation numbers have increased the appetite for risk, with the tech-heavy Nasdaq Composite gaining 3% led by huge gains in tech giants, while the S&P 500 index added more than 2% led by construction and retail shares since both tech and economic growth asset classes are benefiting from the lower interest rates and the higher future cash flows.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

The CPI-consumer price index, which tracks the prices that consumers pay for a variety of goods and services rose 8.5% in July from a year ago, which was lower than market expectations of an increase of 8,7%, and much lower than June’s reading of 9,1%, the highest inflation level since the early 1980s.

The easing of inflation was based on the falling energy prices, with gasoline breaking below $4 a gallon, much lower than the peak of $5 a gallon on the pump a few weeks ago, following the drop of the U.S-based WTI crude oil prices below the $90/b level for the first time after the Russian invasion of Ukraine on late February.

The cooler CPI reading has raised traders’ hopes that the Federal Reserve may soon moderate the pace of its campaign of interest-rate increases, boosting the appetite for beaten-down assets such as growth stocks and cryptocurrencies, and adding pressure on the monetary-sensitive bond yields and dollar.

The expectations of a less hawkish Federal Reserve have pushed the 10-year Treasury yields to as low as 2,75%, down about 75 basis points from their June peak of 3,50%, while the DXY-U.S. dollar index fell below 105 level, almost 4% down from multi-year highs of 109,3 on mid-July, as the softer CPI data dropped the Fed funds futures to a 43% probability of a 75-bps rate hike at the next FOMC meeting on September 21, down from 63% probability of pre-CPI data.

Wednesday’s inflation numbers have increased the appetite for risk, with the tech-heavy Nasdaq Composite gaining 3% led by huge gains in tech giants, while the S&P 500 index added more than 2% led by construction and retail shares since both tech and economic growth asset classes are benefiting from the lower interest rates and the higher future cash flows.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

US stock markets jumped by more than 2% on Wednesday, surging to the highest in two months following the softer than expected US CPI inflation reading for July, which stoked speculation that the Federal Reserve could pivot to a shallower pace of interest-rate hikes.

The CPI-consumer price index, which tracks the prices that consumers pay for a variety of goods and services rose 8.5% in July from a year ago, which was lower than market expectations of an increase of 8,7%, and much lower than June’s reading of 9,1%, the highest inflation level since the early 1980s.

The easing of inflation was based on the falling energy prices, with gasoline breaking below $4 a gallon, much lower than the peak of $5 a gallon on the pump a few weeks ago, following the drop of the U.S-based WTI crude oil prices below the $90/b level for the first time after the Russian invasion of Ukraine on late February.

The cooler CPI reading has raised traders’ hopes that the Federal Reserve may soon moderate the pace of its campaign of interest-rate increases, boosting the appetite for beaten-down assets such as growth stocks and cryptocurrencies, and adding pressure on the monetary-sensitive bond yields and dollar.

The expectations of a less hawkish Federal Reserve have pushed the 10-year Treasury yields to as low as 2,75%, down about 75 basis points from their June peak of 3,50%, while the DXY-U.S. dollar index fell below 105 level, almost 4% down from multi-year highs of 109,3 on mid-July, as the softer CPI data dropped the Fed funds futures to a 43% probability of a 75-bps rate hike at the next FOMC meeting on September 21, down from 63% probability of pre-CPI data.

Wednesday’s inflation numbers have increased the appetite for risk, with the tech-heavy Nasdaq Composite gaining 3% led by huge gains in tech giants, while the S&P 500 index added more than 2% led by construction and retail shares since both tech and economic growth asset classes are benefiting from the lower interest rates and the higher future cash flows.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

US stock markets jumped by more than 2% on Wednesday, surging to the highest in two months following the softer than expected US CPI inflation reading for July, which stoked speculation that the Federal Reserve could pivot to a shallower pace of interest-rate hikes.

The CPI-consumer price index, which tracks the prices that consumers pay for a variety of goods and services rose 8.5% in July from a year ago, which was lower than market expectations of an increase of 8,7%, and much lower than June’s reading of 9,1%, the highest inflation level since the early 1980s.

The easing of inflation was based on the falling energy prices, with gasoline breaking below $4 a gallon, much lower than the peak of $5 a gallon on the pump a few weeks ago, following the drop of the U.S-based WTI crude oil prices below the $90/b level for the first time after the Russian invasion of Ukraine on late February.

The cooler CPI reading has raised traders’ hopes that the Federal Reserve may soon moderate the pace of its campaign of interest-rate increases, boosting the appetite for beaten-down assets such as growth stocks and cryptocurrencies, and adding pressure on the monetary-sensitive bond yields and dollar.

The expectations of a less hawkish Federal Reserve have pushed the 10-year Treasury yields to as low as 2,75%, down about 75 basis points from their June peak of 3,50%, while the DXY-U.S. dollar index fell below 105 level, almost 4% down from multi-year highs of 109,3 on mid-July, as the softer CPI data dropped the Fed funds futures to a 43% probability of a 75-bps rate hike at the next FOMC meeting on September 21, down from 63% probability of pre-CPI data.

Wednesday’s inflation numbers have increased the appetite for risk, with the tech-heavy Nasdaq Composite gaining 3% led by huge gains in tech giants, while the S&P 500 index added more than 2% led by construction and retail shares since both tech and economic growth asset classes are benefiting from the lower interest rates and the higher future cash flows.

Nasdaq Composite, Daily chart

As a result, the Nasdaq Composite and the S&P 500 index are now up more than 20% and 15% from their mid-June lows respectively, with the tech-focused index officially re-entering a new Bull market as investors are jumping into the beaten-down growth-sensitive tech stocks that have dumped earlier this year.

Pound Sterling trades sideways at around $1,20 on a gloomy economic outlook

Posted on by Vrasidas Neofytou

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The BoE, which hiked rates for the sixth consecutive increase to 1,75%, has never raised the Bank Rate by a half point since it was made independent from the British government in 1997.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The BoE, which hiked rates for the sixth consecutive increase to 1,75%, has never raised the Bank Rate by a half point since it was made independent from the British government in 1997.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The BoE hiked its benchmark rate by 50 bps to 1.75% last Thursday, the highest level since late 2008, but warned about a long recession ahead in Britain, which drove the currency down to $1,20.

The BoE, which hiked rates for the sixth consecutive increase to 1,75%, has never raised the Bank Rate by a half point since it was made independent from the British government in 1997.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The BoE hiked its benchmark rate by 50 bps to 1.75% last Thursday, the highest level since late 2008, but warned about a long recession ahead in Britain, which drove the currency down to $1,20.

The BoE, which hiked rates for the sixth consecutive increase to 1,75%, has never raised the Bank Rate by a half point since it was made independent from the British government in 1997.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

GBP/USD pair, Daily chart

The BoE hiked its benchmark rate by 50 bps to 1.75% last Thursday, the highest level since late 2008, but warned about a long recession ahead in Britain, which drove the currency down to $1,20.

The BoE, which hiked rates for the sixth consecutive increase to 1,75%, has never raised the Bank Rate by a half point since it was made independent from the British government in 1997.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

GBP/USD pair, Daily chart

The BoE hiked its benchmark rate by 50 bps to 1.75% last Thursday, the highest level since late 2008, but warned about a long recession ahead in Britain, which drove the currency down to $1,20.

The BoE, which hiked rates for the sixth consecutive increase to 1,75%, has never raised the Bank Rate by a half point since it was made independent from the British government in 1997.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

GBP/USD pair, Daily chart

The BoE hiked its benchmark rate by 50 bps to 1.75% last Thursday, the highest level since late 2008, but warned about a long recession ahead in Britain, which drove the currency down to $1,20.

The BoE, which hiked rates for the sixth consecutive increase to 1,75%, has never raised the Bank Rate by a half point since it was made independent from the British government in 1997.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The GBP/USD pair had retreated from last week’s high of $1,23 to the current lows of $1,20 region following the BoE’s gloomy economic outlook on lower household real income and consumption, at a time when BoE deputy governor, Dave Ramsden, in an interview with Reuters on Tuesday, pointed that he is not ruling out that recession risks could force the central bank to cut rates next year.

GBP/USD pair, Daily chart

The BoE hiked its benchmark rate by 50 bps to 1.75% last Thursday, the highest level since late 2008, but warned about a long recession ahead in Britain, which drove the currency down to $1,20.

The BoE, which hiked rates for the sixth consecutive increase to 1,75%, has never raised the Bank Rate by a half point since it was made independent from the British government in 1997.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The GBP/USD pair had retreated from last week’s high of $1,23 to the current lows of $1,20 region following the BoE’s gloomy economic outlook on lower household real income and consumption, at a time when BoE deputy governor, Dave Ramsden, in an interview with Reuters on Tuesday, pointed that he is not ruling out that recession risks could force the central bank to cut rates next year.

GBP/USD pair, Daily chart

The BoE hiked its benchmark rate by 50 bps to 1.75% last Thursday, the highest level since late 2008, but warned about a long recession ahead in Britain, which drove the currency down to $1,20.

The BoE, which hiked rates for the sixth consecutive increase to 1,75%, has never raised the Bank Rate by a half point since it was made independent from the British government in 1997.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The Pound Sterling has been struggling in a narrow range of $1,20-$1,22 to the dollar since BoE’s rate hike decision last week, on growing concerns over the UK economic outlook, soaring inflation, and a stronger dollar.

The GBP/USD pair had retreated from last week’s high of $1,23 to the current lows of $1,20 region following the BoE’s gloomy economic outlook on lower household real income and consumption, at a time when BoE deputy governor, Dave Ramsden, in an interview with Reuters on Tuesday, pointed that he is not ruling out that recession risks could force the central bank to cut rates next year.

GBP/USD pair, Daily chart

The BoE hiked its benchmark rate by 50 bps to 1.75% last Thursday, the highest level since late 2008, but warned about a long recession ahead in Britain, which drove the currency down to $1,20.

The BoE, which hiked rates for the sixth consecutive increase to 1,75%, has never raised the Bank Rate by a half point since it was made independent from the British government in 1997.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

The Pound Sterling has been struggling in a narrow range of $1,20-$1,22 to the dollar since BoE’s rate hike decision last week, on growing concerns over the UK economic outlook, soaring inflation, and a stronger dollar.

The GBP/USD pair had retreated from last week’s high of $1,23 to the current lows of $1,20 region following the BoE’s gloomy economic outlook on lower household real income and consumption, at a time when BoE deputy governor, Dave Ramsden, in an interview with Reuters on Tuesday, pointed that he is not ruling out that recession risks could force the central bank to cut rates next year.

GBP/USD pair, Daily chart

The BoE hiked its benchmark rate by 50 bps to 1.75% last Thursday, the highest level since late 2008, but warned about a long recession ahead in Britain, which drove the currency down to $1,20.

The BoE, which hiked rates for the sixth consecutive increase to 1,75%, has never raised the Bank Rate by a half point since it was made independent from the British government in 1997.

The UK central bank has warned market participants that a prolonged UK recession would start in the fourth quarter of the year and last five quarters, due mostly to soaring inflation which is expected to rise from 9,4% in June to the peak of 13,3% in October- the highest since 1980 – amid surging wholesale gas prices following Ukraine war, the higher interest rates, and the adjustment to Brexit.

Meanwhile, the U.K. is due to release data on monthly GDP for June and the overall second quarter on Friday, which may point to the start of a contraction after the Bank of England warned last week that the U.K. faces more than a year of recession.

Market reaction:

The pair, which has started the year hovering around the $1,37 level, has been in a persistent bearish downtrend momentum since then, posting lower peaks and lower lows until it hit a 28-month low of $1,176 on July 14, before rebounding to the current levels of $1,20-$1,22 range.

The greenback has been recently supported by the aggressive steps by the Federal Reserve to curb the 41-year high inflation, by hiking rates to the 2,25%-2,50% range and applying other monetary policy measures.

However, the pair is currently finding some support near the psychological level of $1,20 amid the recent weakness of the dollar and bond yields due to lower safe-haven flows following the rally in stocks and other risky assets.

Markets edge higher ahead of a busy week with earnings and inflation data

Posted on by Vrasidas Neofytou

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

Market participants will be focused this week on fresh inflation data, and especially on the U.S. Consumer Price Index (CPI) set for release on Wednesday, the Producer Price Index (PPI) on Thursday, and the Consumer Sentiment on Friday. The CPI is expected to slow to 8,7% in July y-o-y from a 41-year high of 9,1% in June amid falling gasoline and energy prices.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

Market participants will be focused this week on fresh inflation data, and especially on the U.S. Consumer Price Index (CPI) set for release on Wednesday, the Producer Price Index (PPI) on Thursday, and the Consumer Sentiment on Friday. The CPI is expected to slow to 8,7% in July y-o-y from a 41-year high of 9,1% in June amid falling gasoline and energy prices.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

The second-quarter earnings season is moving to its tail-end with 432 S&P 500 companies having already reported results, nearly 80% among them reporting better-than-estimated earnings.

Market participants will be focused this week on fresh inflation data, and especially on the U.S. Consumer Price Index (CPI) set for release on Wednesday, the Producer Price Index (PPI) on Thursday, and the Consumer Sentiment on Friday. The CPI is expected to slow to 8,7% in July y-o-y from a 41-year high of 9,1% in June amid falling gasoline and energy prices.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

The second-quarter earnings season is moving to its tail-end with 432 S&P 500 companies having already reported results, nearly 80% among them reporting better-than-estimated earnings.

Market participants will be focused this week on fresh inflation data, and especially on the U.S. Consumer Price Index (CPI) set for release on Wednesday, the Producer Price Index (PPI) on Thursday, and the Consumer Sentiment on Friday. The CPI is expected to slow to 8,7% in July y-o-y from a 41-year high of 9,1% in June amid falling gasoline and energy prices.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

S&P 500 index, Daily chart

The second-quarter earnings season is moving to its tail-end with 432 S&P 500 companies having already reported results, nearly 80% among them reporting better-than-estimated earnings.

Market participants will be focused this week on fresh inflation data, and especially on the U.S. Consumer Price Index (CPI) set for release on Wednesday, the Producer Price Index (PPI) on Thursday, and the Consumer Sentiment on Friday. The CPI is expected to slow to 8,7% in July y-o-y from a 41-year high of 9,1% in June amid falling gasoline and energy prices.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

S&P 500 index, Daily chart

The second-quarter earnings season is moving to its tail-end with 432 S&P 500 companies having already reported results, nearly 80% among them reporting better-than-estimated earnings.

Market participants will be focused this week on fresh inflation data, and especially on the U.S. Consumer Price Index (CPI) set for release on Wednesday, the Producer Price Index (PPI) on Thursday, and the Consumer Sentiment on Friday. The CPI is expected to slow to 8,7% in July y-o-y from a 41-year high of 9,1% in June amid falling gasoline and energy prices.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

S&P 500 index, Daily chart

The second-quarter earnings season is moving to its tail-end with 432 S&P 500 companies having already reported results, nearly 80% among them reporting better-than-estimated earnings.

Market participants will be focused this week on fresh inflation data, and especially on the U.S. Consumer Price Index (CPI) set for release on Wednesday, the Producer Price Index (PPI) on Thursday, and the Consumer Sentiment on Friday. The CPI is expected to slow to 8,7% in July y-o-y from a 41-year high of 9,1% in June amid falling gasoline and energy prices.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

The tech-heavy Nasdaq Composite settled last week up nearly 3%, and the S&P 500 added almost 1% for its third winning week in a row, as the resilient labour market and the solid Q2 earnings reports eased some recession fears, while the industrial index Dow Jones ended the week almost flat due to losses in energies.

S&P 500 index, Daily chart

The second-quarter earnings season is moving to its tail-end with 432 S&P 500 companies having already reported results, nearly 80% among them reporting better-than-estimated earnings.

Market participants will be focused this week on fresh inflation data, and especially on the U.S. Consumer Price Index (CPI) set for release on Wednesday, the Producer Price Index (PPI) on Thursday, and the Consumer Sentiment on Friday. The CPI is expected to slow to 8,7% in July y-o-y from a 41-year high of 9,1% in June amid falling gasoline and energy prices.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

The tech-heavy Nasdaq Composite settled last week up nearly 3%, and the S&P 500 added almost 1% for its third winning week in a row, as the resilient labour market and the solid Q2 earnings reports eased some recession fears, while the industrial index Dow Jones ended the week almost flat due to losses in energies.

S&P 500 index, Daily chart

The second-quarter earnings season is moving to its tail-end with 432 S&P 500 companies having already reported results, nearly 80% among them reporting better-than-estimated earnings.

Market participants will be focused this week on fresh inflation data, and especially on the U.S. Consumer Price Index (CPI) set for release on Wednesday, the Producer Price Index (PPI) on Thursday, and the Consumer Sentiment on Friday. The CPI is expected to slow to 8,7% in July y-o-y from a 41-year high of 9,1% in June amid falling gasoline and energy prices.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

US stock futures are trading slightly higher on Monday morning, with the three major indices coming off a positive week following some stronger than expected Q2 corporate earnings results together with a solid July’s NFP- employment data for the United States.

The tech-heavy Nasdaq Composite settled last week up nearly 3%, and the S&P 500 added almost 1% for its third winning week in a row, as the resilient labour market and the solid Q2 earnings reports eased some recession fears, while the industrial index Dow Jones ended the week almost flat due to losses in energies.

S&P 500 index, Daily chart

The second-quarter earnings season is moving to its tail-end with 432 S&P 500 companies having already reported results, nearly 80% among them reporting better-than-estimated earnings.

Market participants will be focused this week on fresh inflation data, and especially on the U.S. Consumer Price Index (CPI) set for release on Wednesday, the Producer Price Index (PPI) on Thursday, and the Consumer Sentiment on Friday. The CPI is expected to slow to 8,7% in July y-o-y from a 41-year high of 9,1% in June amid falling gasoline and energy prices.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

US stock futures are trading slightly higher on Monday morning, with the three major indices coming off a positive week following some stronger than expected Q2 corporate earnings results together with a solid July’s NFP- employment data for the United States.

The tech-heavy Nasdaq Composite settled last week up nearly 3%, and the S&P 500 added almost 1% for its third winning week in a row, as the resilient labour market and the solid Q2 earnings reports eased some recession fears, while the industrial index Dow Jones ended the week almost flat due to losses in energies.

S&P 500 index, Daily chart

The second-quarter earnings season is moving to its tail-end with 432 S&P 500 companies having already reported results, nearly 80% among them reporting better-than-estimated earnings.

Market participants will be focused this week on fresh inflation data, and especially on the U.S. Consumer Price Index (CPI) set for release on Wednesday, the Producer Price Index (PPI) on Thursday, and the Consumer Sentiment on Friday. The CPI is expected to slow to 8,7% in July y-o-y from a 41-year high of 9,1% in June amid falling gasoline and energy prices.

Investors will digest how the last Friday’s strong NFP report, which showed that the U.S economy added 528k jobs in July, while the wages grew at a faster-than-expected pace, together with the coming inflation data will have an impact on the Federal Reserve’s monetary decision during FOMC meeting in September.

After the positive jobs report on Friday, the Fed funds futures were pricing in by 68% of a 75-bps rate hike in September, up from around 42% on the pre-NFP report, as it seems that the resilient U.S economy could withstand more rate hikes from the Federal Reserve, triggering a mini-rally on the dollar and yields.

The common currency Euro consolidates below $1,02, unable to break above that key level due to the growing fears over an energy crisis during the coming winter, coupled with the sovereign debt worries, and the stronger dollar and yields.

Meanwhile, the Pound Sterling ended last week with significant losses, retreating from the weekly highs of $1,23 towards the $1,20 support level, despite the 50bps rate hike by the Bank of England on Thursday, the largest in the last 27 years, to curb soaring inflation.

However, the GBP/USD pair dropped to near the $1,20 level after the BoE warned the markets of an expected long recession beginning in Q4, 2022, pointing out the weakness of the UK economy and the currency.

Exclusive Change Capital Ltd is regulated by the Cyprus Securities and Exchange Commission (CySEC) under the licence number CIF 330/17. Exclusive Capital Ltd operates in accordance with the Markets in Financial Instruments Directive (MiFID) of the European Union.

Exclusive Change Capital Ltd is incorporated under the laws of Cyprus, with registration no. HE 337858, regulated by CySEC under license no. 330/17 and has its registered address at Theodorou Potamianou 56, 4th Floor, Kato Polemidia, 4155, Limassol, Cyprus

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