Crude oil hits three-month highs on supply tightness and recovering demand

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Energy traders have remained bullish on crude oil prices since the end of June, as they expect that Saudi Arabia would extend voluntary output cuts of 1 million bpd into September, and be halved from October, which could cause a further tightening on the global oil supply in the final quarter of the year.

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Energy traders have remained bullish on crude oil prices since the end of June, as they expect that Saudi Arabia would extend voluntary output cuts of 1 million bpd into September, and be halved from October, which could cause a further tightening on the global oil supply in the final quarter of the year.

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Tightening oil supplies and inventories:

Energy traders have remained bullish on crude oil prices since the end of June, as they expect that Saudi Arabia would extend voluntary output cuts of 1 million bpd into September, and be halved from October, which could cause a further tightening on the global oil supply in the final quarter of the year.

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Tightening oil supplies and inventories:

Energy traders have remained bullish on crude oil prices since the end of June, as they expect that Saudi Arabia would extend voluntary output cuts of 1 million bpd into September, and be halved from October, which could cause a further tightening on the global oil supply in the final quarter of the year.

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Hence, the voluntary supply cuts together with tightening oil supplies and recovering oil demand have helped oil prices to bounce off June lows of $71/b and $67/b respectively to the current highs, up 18% since the end of June.

Tightening oil supplies and inventories:

Energy traders have remained bullish on crude oil prices since the end of June, as they expect that Saudi Arabia would extend voluntary output cuts of 1 million bpd into September, and be halved from October, which could cause a further tightening on the global oil supply in the final quarter of the year.

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Hence, the voluntary supply cuts together with tightening oil supplies and recovering oil demand have helped oil prices to bounce off June lows of $71/b and $67/b respectively to the current highs, up 18% since the end of June.

Tightening oil supplies and inventories:

Energy traders have remained bullish on crude oil prices since the end of June, as they expect that Saudi Arabia would extend voluntary output cuts of 1 million bpd into September, and be halved from October, which could cause a further tightening on the global oil supply in the final quarter of the year.

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Brent and WTI contracts climbed as high as $85/b and nearly $81/b respectively last Friday, at their highest levels since mid-April, gaining for a fifth straight week, while they are set to post their biggest monthly gains in over a year in July.

Hence, the voluntary supply cuts together with tightening oil supplies and recovering oil demand have helped oil prices to bounce off June lows of $71/b and $67/b respectively to the current highs, up 18% since the end of June.

Tightening oil supplies and inventories:

Energy traders have remained bullish on crude oil prices since the end of June, as they expect that Saudi Arabia would extend voluntary output cuts of 1 million bpd into September, and be halved from October, which could cause a further tightening on the global oil supply in the final quarter of the year.

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Brent and WTI contracts climbed as high as $85/b and nearly $81/b respectively last Friday, at their highest levels since mid-April, gaining for a fifth straight week, while they are set to post their biggest monthly gains in over a year in July.

Hence, the voluntary supply cuts together with tightening oil supplies and recovering oil demand have helped oil prices to bounce off June lows of $71/b and $67/b respectively to the current highs, up 18% since the end of June.

Tightening oil supplies and inventories:

Energy traders have remained bullish on crude oil prices since the end of June, as they expect that Saudi Arabia would extend voluntary output cuts of 1 million bpd into September, and be halved from October, which could cause a further tightening on the global oil supply in the final quarter of the year.

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Brent crude, Daily chart

Brent and WTI contracts climbed as high as $85/b and nearly $81/b respectively last Friday, at their highest levels since mid-April, gaining for a fifth straight week, while they are set to post their biggest monthly gains in over a year in July.

Hence, the voluntary supply cuts together with tightening oil supplies and recovering oil demand have helped oil prices to bounce off June lows of $71/b and $67/b respectively to the current highs, up 18% since the end of June.

Tightening oil supplies and inventories:

Energy traders have remained bullish on crude oil prices since the end of June, as they expect that Saudi Arabia would extend voluntary output cuts of 1 million bpd into September, and be halved from October, which could cause a further tightening on the global oil supply in the final quarter of the year.

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Brent crude, Daily chart

Brent and WTI contracts climbed as high as $85/b and nearly $81/b respectively last Friday, at their highest levels since mid-April, gaining for a fifth straight week, while they are set to post their biggest monthly gains in over a year in July.

Hence, the voluntary supply cuts together with tightening oil supplies and recovering oil demand have helped oil prices to bounce off June lows of $71/b and $67/b respectively to the current highs, up 18% since the end of June.

Tightening oil supplies and inventories:

Energy traders have remained bullish on crude oil prices since the end of June, as they expect that Saudi Arabia would extend voluntary output cuts of 1 million bpd into September, and be halved from October, which could cause a further tightening on the global oil supply in the final quarter of the year.

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Brent crude, Daily chart

Brent and WTI contracts climbed as high as $85/b and nearly $81/b respectively last Friday, at their highest levels since mid-April, gaining for a fifth straight week, while they are set to post their biggest monthly gains in over a year in July.

Hence, the voluntary supply cuts together with tightening oil supplies and recovering oil demand have helped oil prices to bounce off June lows of $71/b and $67/b respectively to the current highs, up 18% since the end of June.

Tightening oil supplies and inventories:

Energy traders have remained bullish on crude oil prices since the end of June, as they expect that Saudi Arabia would extend voluntary output cuts of 1 million bpd into September, and be halved from October, which could cause a further tightening on the global oil supply in the final quarter of the year.

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Both Brent and WTI crude oil prices hover near three-month highs of $84.50/b and $80.50/b on Monday morning as the production cuts from OPEC+ and Russia have tightened global supplies coupled with the economic resiliency, falling inflation, and growing optimism over China’s stimulus.

Brent crude, Daily chart

Brent and WTI contracts climbed as high as $85/b and nearly $81/b respectively last Friday, at their highest levels since mid-April, gaining for a fifth straight week, while they are set to post their biggest monthly gains in over a year in July.

Hence, the voluntary supply cuts together with tightening oil supplies and recovering oil demand have helped oil prices to bounce off June lows of $71/b and $67/b respectively to the current highs, up 18% since the end of June.

Tightening oil supplies and inventories:

Energy traders have remained bullish on crude oil prices since the end of June, as they expect that Saudi Arabia would extend voluntary output cuts of 1 million bpd into September, and be halved from October, which could cause a further tightening on the global oil supply in the final quarter of the year.

OPEC+ and Russian oil cuts coupled with the rebounding demand have brought back global inventory deficits- which include crude and fuel products- providing support for oil prices.

Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. https://www.reuters.com/business/energy/oil-inventory-drops-set-stage-higher-prices-2023-07-31/

Recovering oil demand:

Oil prices have also been supported by the optimism over a recovering oil demand around the world, despite the ongoing worries that a recession could hit oil demand growth.

Rising summer demand as more people are driving and flying has also boosted oil prices offsetting some fuel demand weakness from struggling China.

Goldman Sachs, in its latest report on July 30, estimated that global oil demand rose to a record 102.8 million bpd in July, and it revised up 2023 demand by about 550,000 bpd on stronger economic growth estimates in India and the United States, offsetting a downgrade for China’s consumption. https://www.reuters.com/business/energy/goldman-upgrades-oil-demand-outlook-market-tempers-growth-pessimism-2023-07-31/#:~:text=July%2030%20(Reuters)%20%2D%20Goldman,a%20less%20pessimistic%20growth%20outlook.

Adding to this context, Exxon Mobil’s CEO Darren Woods said the company expects record oil demand this year and next year, and that this may help boost energy prices in the second half of the year. https://www.investing.com/news/commodities-news/oil-on-track-for-biggest-monthly-gains-in-over-a-year-3138501?dicbo=v2-HQ8ApSk

Copper rebounds over $3.90/lb on Chinese stimulus and a falling dollar

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

Falling dollar boosts copper:

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

Falling dollar boosts copper:

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

The Chinese government has recently signaled that they will unlock more stimulus measures to support a slowing post-pandemic economic rebound, boost the struggling local property market, and increase the country’s automobile and consumer electronics spending.

 

Falling dollar boosts copper:

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

The Chinese government has recently signaled that they will unlock more stimulus measures to support a slowing post-pandemic economic rebound, boost the struggling local property market, and increase the country’s automobile and consumer electronics spending.

 

Falling dollar boosts copper:

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

Commodities traders are now awaiting more cues on stimulus measures from China, the world’s largest copper importer and refiner, which could increase the demand for copper after a three-year swamp.

The Chinese government has recently signaled that they will unlock more stimulus measures to support a slowing post-pandemic economic rebound, boost the struggling local property market, and increase the country’s automobile and consumer electronics spending.

 

Falling dollar boosts copper:

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

Commodities traders are now awaiting more cues on stimulus measures from China, the world’s largest copper importer and refiner, which could increase the demand for copper after a three-year swamp.

The Chinese government has recently signaled that they will unlock more stimulus measures to support a slowing post-pandemic economic rebound, boost the struggling local property market, and increase the country’s automobile and consumer electronics spending.

 

Falling dollar boosts copper:

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

Copper futures rose as high as $3,94 a pound this morning, posting over 2.5% weekly gains so far this week, and adding more than 10% after bottoming at $3.55 at the end of May amid weak economic readings from China.

Commodities traders are now awaiting more cues on stimulus measures from China, the world’s largest copper importer and refiner, which could increase the demand for copper after a three-year swamp.

The Chinese government has recently signaled that they will unlock more stimulus measures to support a slowing post-pandemic economic rebound, boost the struggling local property market, and increase the country’s automobile and consumer electronics spending.

 

Falling dollar boosts copper:

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

Copper futures rose as high as $3,94 a pound this morning, posting over 2.5% weekly gains so far this week, and adding more than 10% after bottoming at $3.55 at the end of May amid weak economic readings from China.

Commodities traders are now awaiting more cues on stimulus measures from China, the world’s largest copper importer and refiner, which could increase the demand for copper after a three-year swamp.

The Chinese government has recently signaled that they will unlock more stimulus measures to support a slowing post-pandemic economic rebound, boost the struggling local property market, and increase the country’s automobile and consumer electronics spending.

 

Falling dollar boosts copper:

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

Copper prices, Daily chart

Copper futures rose as high as $3,94 a pound this morning, posting over 2.5% weekly gains so far this week, and adding more than 10% after bottoming at $3.55 at the end of May amid weak economic readings from China.

Commodities traders are now awaiting more cues on stimulus measures from China, the world’s largest copper importer and refiner, which could increase the demand for copper after a three-year swamp.

The Chinese government has recently signaled that they will unlock more stimulus measures to support a slowing post-pandemic economic rebound, boost the struggling local property market, and increase the country’s automobile and consumer electronics spending.

 

Falling dollar boosts copper:

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

Copper prices, Daily chart

Copper futures rose as high as $3,94 a pound this morning, posting over 2.5% weekly gains so far this week, and adding more than 10% after bottoming at $3.55 at the end of May amid weak economic readings from China.

Commodities traders are now awaiting more cues on stimulus measures from China, the world’s largest copper importer and refiner, which could increase the demand for copper after a three-year swamp.

The Chinese government has recently signaled that they will unlock more stimulus measures to support a slowing post-pandemic economic rebound, boost the struggling local property market, and increase the country’s automobile and consumer electronics spending.

 

Falling dollar boosts copper:

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

Copper prices, Daily chart

Copper futures rose as high as $3,94 a pound this morning, posting over 2.5% weekly gains so far this week, and adding more than 10% after bottoming at $3.55 at the end of May amid weak economic readings from China.

Commodities traders are now awaiting more cues on stimulus measures from China, the world’s largest copper importer and refiner, which could increase the demand for copper after a three-year swamp.

The Chinese government has recently signaled that they will unlock more stimulus measures to support a slowing post-pandemic economic rebound, boost the struggling local property market, and increase the country’s automobile and consumer electronics spending.

 

Falling dollar boosts copper:

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

The price of copper is approaching the key $4 a pound resistant level, having benefited from Chinese officials promising more stimulus measures to support economic recovery, and the weakness in the U.S. dollar, despite the soft manufacturing and construction activity around the world which is adding pressure to copper demand growth.

Copper prices, Daily chart

Copper futures rose as high as $3,94 a pound this morning, posting over 2.5% weekly gains so far this week, and adding more than 10% after bottoming at $3.55 at the end of May amid weak economic readings from China.

Commodities traders are now awaiting more cues on stimulus measures from China, the world’s largest copper importer and refiner, which could increase the demand for copper after a three-year swamp.

The Chinese government has recently signaled that they will unlock more stimulus measures to support a slowing post-pandemic economic rebound, boost the struggling local property market, and increase the country’s automobile and consumer electronics spending.

 

Falling dollar boosts copper:

The dollar-denominated copper prices are reacting positively to the recent weakness on the greenback, even after Wednesday’s fresh rate hike by 25bps to the target range of 5.25%-5.50% by the Federal Reserve as widely expected.

The broader action of the DXY-U.S. Dollar Index has been bearish lately, falling as low as the 100 mark, which has given some strength to copper and other dollar-denominated industrial and precious metals as the falling dollar makes them less expensive for buyers with foreign currency.

However, any significant gains on copper could be limited as Fed downplayed the prospect of a rate cut during 2023, pointing to continued pressure on copper from U.S. rates remaining at their highest level since 2001.

Financial markets are flat at the start of the key central bank week

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Federal Reserve’s interest rate table https://www.investing.com/economic-calendar/interest-rate-decision-168

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Federal Reserve’s interest rate table https://www.investing.com/economic-calendar/interest-rate-decision-168

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Federal Reserve’s interest rate table https://www.investing.com/economic-calendar/interest-rate-decision-168

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Investors will have a look also on the statement and comments by Chair Jerome Powell after the conclusion of the meeting, which might give some signals if the Federal Reserve is done with its 16-month adventure of taming inflation with rate hikes, encouraged by the latest cooling of inflation in June.

Federal Reserve’s interest rate table https://www.investing.com/economic-calendar/interest-rate-decision-168

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Investors will have a look also on the statement and comments by Chair Jerome Powell after the conclusion of the meeting, which might give some signals if the Federal Reserve is done with its 16-month adventure of taming inflation with rate hikes, encouraged by the latest cooling of inflation in June.

Federal Reserve’s interest rate table https://www.investing.com/economic-calendar/interest-rate-decision-168

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

U.S. Federal Reserve policymakers will have a two-day policy meeting on Tuesday and Wednesday, with investors fully pricing a 25-bps rate hike to 5.50% as the CPI inflation rate still trending above Fed’s 2% annual target range. https://www.investing.com/central-banks/fed-rate-monitor

Investors will have a look also on the statement and comments by Chair Jerome Powell after the conclusion of the meeting, which might give some signals if the Federal Reserve is done with its 16-month adventure of taming inflation with rate hikes, encouraged by the latest cooling of inflation in June.

Federal Reserve’s interest rate table https://www.investing.com/economic-calendar/interest-rate-decision-168

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

U.S. Federal Reserve policymakers will have a two-day policy meeting on Tuesday and Wednesday, with investors fully pricing a 25-bps rate hike to 5.50% as the CPI inflation rate still trending above Fed’s 2% annual target range. https://www.investing.com/central-banks/fed-rate-monitor

Investors will have a look also on the statement and comments by Chair Jerome Powell after the conclusion of the meeting, which might give some signals if the Federal Reserve is done with its 16-month adventure of taming inflation with rate hikes, encouraged by the latest cooling of inflation in June.

Federal Reserve’s interest rate table https://www.investing.com/economic-calendar/interest-rate-decision-168

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Federal Reserve policy decision on Wednesday:

U.S. Federal Reserve policymakers will have a two-day policy meeting on Tuesday and Wednesday, with investors fully pricing a 25-bps rate hike to 5.50% as the CPI inflation rate still trending above Fed’s 2% annual target range. https://www.investing.com/central-banks/fed-rate-monitor

Investors will have a look also on the statement and comments by Chair Jerome Powell after the conclusion of the meeting, which might give some signals if the Federal Reserve is done with its 16-month adventure of taming inflation with rate hikes, encouraged by the latest cooling of inflation in June.

Federal Reserve’s interest rate table https://www.investing.com/economic-calendar/interest-rate-decision-168

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Federal Reserve policy decision on Wednesday:

U.S. Federal Reserve policymakers will have a two-day policy meeting on Tuesday and Wednesday, with investors fully pricing a 25-bps rate hike to 5.50% as the CPI inflation rate still trending above Fed’s 2% annual target range. https://www.investing.com/central-banks/fed-rate-monitor

Investors will have a look also on the statement and comments by Chair Jerome Powell after the conclusion of the meeting, which might give some signals if the Federal Reserve is done with its 16-month adventure of taming inflation with rate hikes, encouraged by the latest cooling of inflation in June.

Federal Reserve’s interest rate table https://www.investing.com/economic-calendar/interest-rate-decision-168

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Financial markets were flat on Monday morning as traders weighed what could be on the horizon for interest rates ahead of the Fed’s meeting on Wednesday, followed by the European Central Bank (ECB) on Thursday, and the Bank of Japan on Friday.

Federal Reserve policy decision on Wednesday:

U.S. Federal Reserve policymakers will have a two-day policy meeting on Tuesday and Wednesday, with investors fully pricing a 25-bps rate hike to 5.50% as the CPI inflation rate still trending above Fed’s 2% annual target range. https://www.investing.com/central-banks/fed-rate-monitor

Investors will have a look also on the statement and comments by Chair Jerome Powell after the conclusion of the meeting, which might give some signals if the Federal Reserve is done with its 16-month adventure of taming inflation with rate hikes, encouraged by the latest cooling of inflation in June.

Federal Reserve’s interest rate table https://www.investing.com/economic-calendar/interest-rate-decision-168

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Financial markets were flat on Monday morning as traders weighed what could be on the horizon for interest rates ahead of the Fed’s meeting on Wednesday, followed by the European Central Bank (ECB) on Thursday, and the Bank of Japan on Friday.

Federal Reserve policy decision on Wednesday:

U.S. Federal Reserve policymakers will have a two-day policy meeting on Tuesday and Wednesday, with investors fully pricing a 25-bps rate hike to 5.50% as the CPI inflation rate still trending above Fed’s 2% annual target range. https://www.investing.com/central-banks/fed-rate-monitor

Investors will have a look also on the statement and comments by Chair Jerome Powell after the conclusion of the meeting, which might give some signals if the Federal Reserve is done with its 16-month adventure of taming inflation with rate hikes, encouraged by the latest cooling of inflation in June.

Federal Reserve’s interest rate table https://www.investing.com/economic-calendar/interest-rate-decision-168

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

The week that all market participants have been waiting for; just started, as some central banks-Federal Reserve, European Central Bank, and Bank of Japan will have some key interest rate decisions in their fight against persistent inflation.

Financial markets were flat on Monday morning as traders weighed what could be on the horizon for interest rates ahead of the Fed’s meeting on Wednesday, followed by the European Central Bank (ECB) on Thursday, and the Bank of Japan on Friday.

Federal Reserve policy decision on Wednesday:

U.S. Federal Reserve policymakers will have a two-day policy meeting on Tuesday and Wednesday, with investors fully pricing a 25-bps rate hike to 5.50% as the CPI inflation rate still trending above Fed’s 2% annual target range. https://www.investing.com/central-banks/fed-rate-monitor

Investors will have a look also on the statement and comments by Chair Jerome Powell after the conclusion of the meeting, which might give some signals if the Federal Reserve is done with its 16-month adventure of taming inflation with rate hikes, encouraged by the latest cooling of inflation in June.

Federal Reserve’s interest rate table https://www.investing.com/economic-calendar/interest-rate-decision-168

The world’s largest central bank paused interest rate hikes in June after increasing its policy rate by 500 basis points since March 2022, posting its fastest monetary policy tightening cycle in more than 40 years to curb record-high inflation.

ECB rate hike meeting on Thursday:

Focus this week is also on the European Central Bank (ECB) policy meeting on Thursday when policymakers are expected to announce a 25-basis point rate hike to 4.25% and offer guidance for the final stages of their efforts to fight inflation, although it recently signaled that an end to its rate hike cycle is close.

The European Central Bank signaled earlier this month that it could be ready to pause on rate hikes from September onward, with investors focusing on what ECB President Christine Lagarde says about the future of the tightening cycle and the bloc’s economy.

Eurozone’s central bank has delivered eight consecutive rate rises since July 2022 for a total of 400 basis points to cool inflation that climbed up to 10.6% in December 2022, before retreating to the current levels of 5.5% in June, down from 6.1% in May, but still well above ECB’s 2% annual target. https://www.investing.com/economic-calendar/cpi-68

Bank of Japan policy decision on Friday:

Even though investors expect both the Fed and ECB to hike rates by 25 basis points this week, they don’t expect the same for the Bank of Japan, which is leaning towards maintaining its super-loose policy intact, to keep its rate to -0.10%, and the yield curve control policy unchanged, despite elevated price pressure.

Japan’s core inflation rate has come in at 3.3% in June, staying above the BoJ’s 2% target for the 15th straight month, which could add some pressure on the bank to soon begin phasing out its massive monetary stimulus or to make a policy shift.

Nasdaq Composite fell 2% as the stocks of Netflix and Tesla sank

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

The company reported a net income of $2.7 billion in the second quarter of 2023, a 20% increase from a year ago, while its Earnings per share also rose 20% to 78 cents, with Total revenue rising 47% to $24.93 billion.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

The company reported a net income of $2.7 billion in the second quarter of 2023, a 20% increase from a year ago, while its Earnings per share also rose 20% to 78 cents, with Total revenue rising 47% to $24.93 billion.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Tesla had recently cut prices for its products such as EVs, solar panels, and batteries to boost sales and profits amid increasing global competition and poor economic sentiment due to record-high inflation and higher borrowing costs rates.

The company reported a net income of $2.7 billion in the second quarter of 2023, a 20% increase from a year ago, while its Earnings per share also rose 20% to 78 cents, with Total revenue rising 47% to $24.93 billion.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Tesla had recently cut prices for its products such as EVs, solar panels, and batteries to boost sales and profits amid increasing global competition and poor economic sentiment due to record-high inflation and higher borrowing costs rates.

The company reported a net income of $2.7 billion in the second quarter of 2023, a 20% increase from a year ago, while its Earnings per share also rose 20% to 78 cents, with Total revenue rising 47% to $24.93 billion.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Tesla stock, Daily chart

Tesla had recently cut prices for its products such as EVs, solar panels, and batteries to boost sales and profits amid increasing global competition and poor economic sentiment due to record-high inflation and higher borrowing costs rates.

The company reported a net income of $2.7 billion in the second quarter of 2023, a 20% increase from a year ago, while its Earnings per share also rose 20% to 78 cents, with Total revenue rising 47% to $24.93 billion.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Tesla stock, Daily chart

Tesla had recently cut prices for its products such as EVs, solar panels, and batteries to boost sales and profits amid increasing global competition and poor economic sentiment due to record-high inflation and higher borrowing costs rates.

The company reported a net income of $2.7 billion in the second quarter of 2023, a 20% increase from a year ago, while its Earnings per share also rose 20% to 78 cents, with Total revenue rising 47% to $24.93 billion.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Tesla stock, Daily chart

Tesla had recently cut prices for its products such as EVs, solar panels, and batteries to boost sales and profits amid increasing global competition and poor economic sentiment due to record-high inflation and higher borrowing costs rates.

The company reported a net income of $2.7 billion in the second quarter of 2023, a 20% increase from a year ago, while its Earnings per share also rose 20% to 78 cents, with Total revenue rising 47% to $24.93 billion.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Even though Tesla had reported stronger-than-expected revenues and profits for Q2, 2023, the stock ended the session down by 9.7% to $262.90, its worst day since April, as profit margins came in below expectations at a time investors are concerned about its future profitability after it cut prices for its EV-electric vehicles.

Tesla stock, Daily chart

Tesla had recently cut prices for its products such as EVs, solar panels, and batteries to boost sales and profits amid increasing global competition and poor economic sentiment due to record-high inflation and higher borrowing costs rates.

The company reported a net income of $2.7 billion in the second quarter of 2023, a 20% increase from a year ago, while its Earnings per share also rose 20% to 78 cents, with Total revenue rising 47% to $24.93 billion.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Even though Tesla had reported stronger-than-expected revenues and profits for Q2, 2023, the stock ended the session down by 9.7% to $262.90, its worst day since April, as profit margins came in below expectations at a time investors are concerned about its future profitability after it cut prices for its EV-electric vehicles.

Tesla stock, Daily chart

Tesla had recently cut prices for its products such as EVs, solar panels, and batteries to boost sales and profits amid increasing global competition and poor economic sentiment due to record-high inflation and higher borrowing costs rates.

The company reported a net income of $2.7 billion in the second quarter of 2023, a 20% increase from a year ago, while its Earnings per share also rose 20% to 78 cents, with Total revenue rising 47% to $24.93 billion.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Tesla plunged 9.7% despite higher income:

Even though Tesla had reported stronger-than-expected revenues and profits for Q2, 2023, the stock ended the session down by 9.7% to $262.90, its worst day since April, as profit margins came in below expectations at a time investors are concerned about its future profitability after it cut prices for its EV-electric vehicles.

Tesla stock, Daily chart

Tesla had recently cut prices for its products such as EVs, solar panels, and batteries to boost sales and profits amid increasing global competition and poor economic sentiment due to record-high inflation and higher borrowing costs rates.

The company reported a net income of $2.7 billion in the second quarter of 2023, a 20% increase from a year ago, while its Earnings per share also rose 20% to 78 cents, with Total revenue rising 47% to $24.93 billion.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

Tesla plunged 9.7% despite higher income:

Even though Tesla had reported stronger-than-expected revenues and profits for Q2, 2023, the stock ended the session down by 9.7% to $262.90, its worst day since April, as profit margins came in below expectations at a time investors are concerned about its future profitability after it cut prices for its EV-electric vehicles.

Tesla stock, Daily chart

Tesla had recently cut prices for its products such as EVs, solar panels, and batteries to boost sales and profits amid increasing global competition and poor economic sentiment due to record-high inflation and higher borrowing costs rates.

The company reported a net income of $2.7 billion in the second quarter of 2023, a 20% increase from a year ago, while its Earnings per share also rose 20% to 78 cents, with Total revenue rising 47% to $24.93 billion.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

It was a hard trading day on Thursday for the technology sector as the tech-heavy Nasdaq Composite dropped 2.05% at 14,063 following the significant declines for Tesla, Netflix, and other tech giants after posting their Q2 earnings reports.

 

Tesla plunged 9.7% despite higher income:

Even though Tesla had reported stronger-than-expected revenues and profits for Q2, 2023, the stock ended the session down by 9.7% to $262.90, its worst day since April, as profit margins came in below expectations at a time investors are concerned about its future profitability after it cut prices for its EV-electric vehicles.

Tesla stock, Daily chart

Tesla had recently cut prices for its products such as EVs, solar panels, and batteries to boost sales and profits amid increasing global competition and poor economic sentiment due to record-high inflation and higher borrowing costs rates.

The company reported a net income of $2.7 billion in the second quarter of 2023, a 20% increase from a year ago, while its Earnings per share also rose 20% to 78 cents, with Total revenue rising 47% to $24.93 billion.

Investors turned net sellers on Tesla yesterday which sank as much as 10% intraday after CEO Elon Musk and other executives said on the earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Musk said that they expect Q3 production to be a little bit down because they have got summer shutdowns for a lot of factory upgrades, while they continue targeting 1.8 million vehicle deliveries in 2023.

 

Netflix tumbled 8.41%:

Shares of the streaming giant Netflix dropped 8.41% to $437 on lower-than-expected Q2 revenue readings, as the company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts. The revenues were up 3% from $7.97 billion in the prior-year period, while the Net income rose to $1.49 billion from $1.44 billion in the year-ago quarter.

Netflix also announced that it added 5.9 million customers during the second quarter amid its broader crackdown on password sharing in the U.S., while it would roll out its new ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.

Despite the recent losses, Netflix shares are still up nearly 48% for the year so far, following the general optimism around the “red hot” AI ecosystem, which could boost its revenues in the longer term.

S&P 500 and Nasdaq hit a fresh 15-month high ahead of the Q2 earnings season

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Hence, the AI-driven optimism and the prospect for a less hawkish Federal Reserve due to retreating inflation data have pushed the growth and interest rates-sensitive technology sector to yearly highs, spreading the risk appetite across the board.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Hence, the AI-driven optimism and the prospect for a less hawkish Federal Reserve due to retreating inflation data have pushed the growth and interest rates-sensitive technology sector to yearly highs, spreading the risk appetite across the board.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

The recent gains were driven by the softer-than-expected CPI and PPI inflation readings for June coupled with expectations for a milder-than-forecasted economic recession, which lifted the appetite for risky assets against the safety of the dollar.

Hence, the AI-driven optimism and the prospect for a less hawkish Federal Reserve due to retreating inflation data have pushed the growth and interest rates-sensitive technology sector to yearly highs, spreading the risk appetite across the board.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

The recent gains were driven by the softer-than-expected CPI and PPI inflation readings for June coupled with expectations for a milder-than-forecasted economic recession, which lifted the appetite for risky assets against the safety of the dollar.

Hence, the AI-driven optimism and the prospect for a less hawkish Federal Reserve due to retreating inflation data have pushed the growth and interest rates-sensitive technology sector to yearly highs, spreading the risk appetite across the board.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

U.S. stock indices are coming off a winning week that saw the Dow Jones gain 2.3% to post its best weekly gain since March, while the S&P 500 and Nasdaq Composite added 2.4% and 3.3%, respectively.

The recent gains were driven by the softer-than-expected CPI and PPI inflation readings for June coupled with expectations for a milder-than-forecasted economic recession, which lifted the appetite for risky assets against the safety of the dollar.

Hence, the AI-driven optimism and the prospect for a less hawkish Federal Reserve due to retreating inflation data have pushed the growth and interest rates-sensitive technology sector to yearly highs, spreading the risk appetite across the board.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

U.S. stock indices are coming off a winning week that saw the Dow Jones gain 2.3% to post its best weekly gain since March, while the S&P 500 and Nasdaq Composite added 2.4% and 3.3%, respectively.

The recent gains were driven by the softer-than-expected CPI and PPI inflation readings for June coupled with expectations for a milder-than-forecasted economic recession, which lifted the appetite for risky assets against the safety of the dollar.

Hence, the AI-driven optimism and the prospect for a less hawkish Federal Reserve due to retreating inflation data have pushed the growth and interest rates-sensitive technology sector to yearly highs, spreading the risk appetite across the board.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Nasdaq Composite, Weekly chart

U.S. stock indices are coming off a winning week that saw the Dow Jones gain 2.3% to post its best weekly gain since March, while the S&P 500 and Nasdaq Composite added 2.4% and 3.3%, respectively.

The recent gains were driven by the softer-than-expected CPI and PPI inflation readings for June coupled with expectations for a milder-than-forecasted economic recession, which lifted the appetite for risky assets against the safety of the dollar.

Hence, the AI-driven optimism and the prospect for a less hawkish Federal Reserve due to retreating inflation data have pushed the growth and interest rates-sensitive technology sector to yearly highs, spreading the risk appetite across the board.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Nasdaq Composite, Weekly chart

U.S. stock indices are coming off a winning week that saw the Dow Jones gain 2.3% to post its best weekly gain since March, while the S&P 500 and Nasdaq Composite added 2.4% and 3.3%, respectively.

The recent gains were driven by the softer-than-expected CPI and PPI inflation readings for June coupled with expectations for a milder-than-forecasted economic recession, which lifted the appetite for risky assets against the safety of the dollar.

Hence, the AI-driven optimism and the prospect for a less hawkish Federal Reserve due to retreating inflation data have pushed the growth and interest rates-sensitive technology sector to yearly highs, spreading the risk appetite across the board.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Nasdaq Composite, Weekly chart

U.S. stock indices are coming off a winning week that saw the Dow Jones gain 2.3% to post its best weekly gain since March, while the S&P 500 and Nasdaq Composite added 2.4% and 3.3%, respectively.

The recent gains were driven by the softer-than-expected CPI and PPI inflation readings for June coupled with expectations for a milder-than-forecasted economic recession, which lifted the appetite for risky assets against the safety of the dollar.

Hence, the AI-driven optimism and the prospect for a less hawkish Federal Reserve due to retreating inflation data have pushed the growth and interest rates-sensitive technology sector to yearly highs, spreading the risk appetite across the board.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Tech-heavy Nasdaq Composite led the gains by climbing nearly 1% to 14,245, followed by the S&P 500 which gained 0.40% to 4,522, while the Dow Jones index added 0.22% to reach its highest closing level in 2023 of 34,585.

Nasdaq Composite, Weekly chart

U.S. stock indices are coming off a winning week that saw the Dow Jones gain 2.3% to post its best weekly gain since March, while the S&P 500 and Nasdaq Composite added 2.4% and 3.3%, respectively.

The recent gains were driven by the softer-than-expected CPI and PPI inflation readings for June coupled with expectations for a milder-than-forecasted economic recession, which lifted the appetite for risky assets against the safety of the dollar.

Hence, the AI-driven optimism and the prospect for a less hawkish Federal Reserve due to retreating inflation data have pushed the growth and interest rates-sensitive technology sector to yearly highs, spreading the risk appetite across the board.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Tech-heavy Nasdaq Composite led the gains by climbing nearly 1% to 14,245, followed by the S&P 500 which gained 0.40% to 4,522, while the Dow Jones index added 0.22% to reach its highest closing level in 2023 of 34,585.

Nasdaq Composite, Weekly chart

U.S. stock indices are coming off a winning week that saw the Dow Jones gain 2.3% to post its best weekly gain since March, while the S&P 500 and Nasdaq Composite added 2.4% and 3.3%, respectively.

The recent gains were driven by the softer-than-expected CPI and PPI inflation readings for June coupled with expectations for a milder-than-forecasted economic recession, which lifted the appetite for risky assets against the safety of the dollar.

Hence, the AI-driven optimism and the prospect for a less hawkish Federal Reserve due to retreating inflation data have pushed the growth and interest rates-sensitive technology sector to yearly highs, spreading the risk appetite across the board.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Monday’s trading session ended positively for the three major U.S. indices as traders remain optimistic off of encouraging inflation data from last week, with both S&P 500 index and Nasdaq Composite posting a fresh 15-month high ahead for the second quarter earnings season.

Tech-heavy Nasdaq Composite led the gains by climbing nearly 1% to 14,245, followed by the S&P 500 which gained 0.40% to 4,522, while the Dow Jones index added 0.22% to reach its highest closing level in 2023 of 34,585.

Nasdaq Composite, Weekly chart

U.S. stock indices are coming off a winning week that saw the Dow Jones gain 2.3% to post its best weekly gain since March, while the S&P 500 and Nasdaq Composite added 2.4% and 3.3%, respectively.

The recent gains were driven by the softer-than-expected CPI and PPI inflation readings for June coupled with expectations for a milder-than-forecasted economic recession, which lifted the appetite for risky assets against the safety of the dollar.

Hence, the AI-driven optimism and the prospect for a less hawkish Federal Reserve due to retreating inflation data have pushed the growth and interest rates-sensitive technology sector to yearly highs, spreading the risk appetite across the board.

 

The kick-off of Q2 earnings season:

Markets participants are now awaiting the start of the Q2 earnings season to examine the performance and profitability of the local companies against higher interest rates and inflation at a time Wall Street continues its recent rally.

Investors await a bunch of earnings from big financial institutions later today on Tuesday, with results on deck from Bank of America, Morgan Stanley, Bank of New York Mellon, and PNC Financial.

Sentiment on major banks was boosted last week following better-than-expected quarterly results from JPMorgan Chase & Co, and Wells Fargo, yet Citi was the odd one after its earnings fell short of analyst expectations.

The Big Tech earnings season starts on Wednesday when Tesla and Netflix take the center of the stage, followed by the results of IBM and United Airlines, while Johnson & Johnson, American Airlines, and American Express are not scheduled to release earnings until Friday.

Euro climbs to $1.1250 on a weaker dollar and a hawkish ECB

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

The Euro zone’s currency has gained almost 1700 pips since bottoming at nearly $0.9550 in late September 2022, mainly due to the monetary policy divergence between the Federal Reserve and European Central Bank, and the improving economic fundamentals in the bloc after the initial shock of the Ukraine war.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

The Euro zone’s currency has gained almost 1700 pips since bottoming at nearly $0.9550 in late September 2022, mainly due to the monetary policy divergence between the Federal Reserve and European Central Bank, and the improving economic fundamentals in the bloc after the initial shock of the Ukraine war.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

EUR/USD pair, Daily chart

The Euro zone’s currency has gained almost 1700 pips since bottoming at nearly $0.9550 in late September 2022, mainly due to the monetary policy divergence between the Federal Reserve and European Central Bank, and the improving economic fundamentals in the bloc after the initial shock of the Ukraine war.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

EUR/USD pair, Daily chart

The Euro zone’s currency has gained almost 1700 pips since bottoming at nearly $0.9550 in late September 2022, mainly due to the monetary policy divergence between the Federal Reserve and European Central Bank, and the improving economic fundamentals in the bloc after the initial shock of the Ukraine war.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

EUR/USD pair, Daily chart

The Euro zone’s currency has gained almost 1700 pips since bottoming at nearly $0.9550 in late September 2022, mainly due to the monetary policy divergence between the Federal Reserve and European Central Bank, and the improving economic fundamentals in the bloc after the initial shock of the Ukraine war.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

Euro has been one of the largest beneficiaries of the recent retreatment on the greenback, jumping 2.4% last week to a 16-month high of $1.1250, and recording its sharpest one-week rise since November 2022.

EUR/USD pair, Daily chart

The Euro zone’s currency has gained almost 1700 pips since bottoming at nearly $0.9550 in late September 2022, mainly due to the monetary policy divergence between the Federal Reserve and European Central Bank, and the improving economic fundamentals in the bloc after the initial shock of the Ukraine war.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

Euro has been one of the largest beneficiaries of the recent retreatment on the greenback, jumping 2.4% last week to a 16-month high of $1.1250, and recording its sharpest one-week rise since November 2022.

EUR/USD pair, Daily chart

The Euro zone’s currency has gained almost 1700 pips since bottoming at nearly $0.9550 in late September 2022, mainly due to the monetary policy divergence between the Federal Reserve and European Central Bank, and the improving economic fundamentals in the bloc after the initial shock of the Ukraine war.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

In this context, the world’s reserve currency suffered its worst weekly drop in 2023 so far, posting 2.2% losses last week, with the DXY-U.S. dollar Index, which tracks the greenback against a basket of six other currencies, falling marginally below the key 100 level for the first time since April 2022.

Euro has been one of the largest beneficiaries of the recent retreatment on the greenback, jumping 2.4% last week to a 16-month high of $1.1250, and recording its sharpest one-week rise since November 2022.

EUR/USD pair, Daily chart

The Euro zone’s currency has gained almost 1700 pips since bottoming at nearly $0.9550 in late September 2022, mainly due to the monetary policy divergence between the Federal Reserve and European Central Bank, and the improving economic fundamentals in the bloc after the initial shock of the Ukraine war.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

In this context, the world’s reserve currency suffered its worst weekly drop in 2023 so far, posting 2.2% losses last week, with the DXY-U.S. dollar Index, which tracks the greenback against a basket of six other currencies, falling marginally below the key 100 level for the first time since April 2022.

Euro has been one of the largest beneficiaries of the recent retreatment on the greenback, jumping 2.4% last week to a 16-month high of $1.1250, and recording its sharpest one-week rise since November 2022.

EUR/USD pair, Daily chart

The Euro zone’s currency has gained almost 1700 pips since bottoming at nearly $0.9550 in late September 2022, mainly due to the monetary policy divergence between the Federal Reserve and European Central Bank, and the improving economic fundamentals in the bloc after the initial shock of the Ukraine war.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

Forex investors sold greenback in favor of the Euro and other major growth-led currencies last week as the softer-than-expected inflation readings in June; CPI-consumer prices eased to 3% vs 4% in May and 3.1% expected on Wednesday, while the PPI-producer prices dropped 0.1% vs 0.2% expected on Thursday, have raised expectations the Federal Reserve may be close to ending its aggressive rate-hiking cycle after a final increase of 25 bps on July 26. https://www.cnbc.com/2023/07/12/inflation-rose-just-0point2percent-in-june-less-than-expected-as-consumers-get-a-break-from-price-increases.html?&qsearchterm=Jeff%20cox

In this context, the world’s reserve currency suffered its worst weekly drop in 2023 so far, posting 2.2% losses last week, with the DXY-U.S. dollar Index, which tracks the greenback against a basket of six other currencies, falling marginally below the key 100 level for the first time since April 2022.

Euro has been one of the largest beneficiaries of the recent retreatment on the greenback, jumping 2.4% last week to a 16-month high of $1.1250, and recording its sharpest one-week rise since November 2022.

EUR/USD pair, Daily chart

The Euro zone’s currency has gained almost 1700 pips since bottoming at nearly $0.9550 in late September 2022, mainly due to the monetary policy divergence between the Federal Reserve and European Central Bank, and the improving economic fundamentals in the bloc after the initial shock of the Ukraine war.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

Forex investors sold greenback in favor of the Euro and other major growth-led currencies last week as the softer-than-expected inflation readings in June; CPI-consumer prices eased to 3% vs 4% in May and 3.1% expected on Wednesday, while the PPI-producer prices dropped 0.1% vs 0.2% expected on Thursday, have raised expectations the Federal Reserve may be close to ending its aggressive rate-hiking cycle after a final increase of 25 bps on July 26. https://www.cnbc.com/2023/07/12/inflation-rose-just-0point2percent-in-june-less-than-expected-as-consumers-get-a-break-from-price-increases.html?&qsearchterm=Jeff%20cox

In this context, the world’s reserve currency suffered its worst weekly drop in 2023 so far, posting 2.2% losses last week, with the DXY-U.S. dollar Index, which tracks the greenback against a basket of six other currencies, falling marginally below the key 100 level for the first time since April 2022.

Euro has been one of the largest beneficiaries of the recent retreatment on the greenback, jumping 2.4% last week to a 16-month high of $1.1250, and recording its sharpest one-week rise since November 2022.

EUR/USD pair, Daily chart

The Euro zone’s currency has gained almost 1700 pips since bottoming at nearly $0.9550 in late September 2022, mainly due to the monetary policy divergence between the Federal Reserve and European Central Bank, and the improving economic fundamentals in the bloc after the initial shock of the Ukraine war.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.

The rapid cooling in inflation in the USA which caused a selloff on the greenback last week and the hawkish stance of the ECB have helped Euro to climb as high as $1.1250 against the dollar on Monday morning, posting a fresh 16-month high.

Forex investors sold greenback in favor of the Euro and other major growth-led currencies last week as the softer-than-expected inflation readings in June; CPI-consumer prices eased to 3% vs 4% in May and 3.1% expected on Wednesday, while the PPI-producer prices dropped 0.1% vs 0.2% expected on Thursday, have raised expectations the Federal Reserve may be close to ending its aggressive rate-hiking cycle after a final increase of 25 bps on July 26. https://www.cnbc.com/2023/07/12/inflation-rose-just-0point2percent-in-june-less-than-expected-as-consumers-get-a-break-from-price-increases.html?&qsearchterm=Jeff%20cox

In this context, the world’s reserve currency suffered its worst weekly drop in 2023 so far, posting 2.2% losses last week, with the DXY-U.S. dollar Index, which tracks the greenback against a basket of six other currencies, falling marginally below the key 100 level for the first time since April 2022.

Euro has been one of the largest beneficiaries of the recent retreatment on the greenback, jumping 2.4% last week to a 16-month high of $1.1250, and recording its sharpest one-week rise since November 2022.

EUR/USD pair, Daily chart

The Euro zone’s currency has gained almost 1700 pips since bottoming at nearly $0.9550 in late September 2022, mainly due to the monetary policy divergence between the Federal Reserve and European Central Bank, and the improving economic fundamentals in the bloc after the initial shock of the Ukraine war.

The European Central Bank is widely expected to lift interest rates once more next week as inflation levels in many countries have risen lately, showing an unwelcoming resilience compared to inflation readings in the United States.

Investors will be focused on the speech from ECB President Christine Lagarde later on the day for clues into the central bank’s thinking ahead of the next policy-setting meeting near the end of this month.