14th July 2022: Yesturday closed orders given +13.637%; The fall of all markets continues; The Consumer Price Index in US is 9.1%; Parity of Euro and Dollar
Yesterday closed orders given +13.637%
Symbol: EURJPY; Type: BUY; Open Price: 139.215; Close Price: 138.774; Profit: -0.317%.
Symbol: TSLA; Type: SELL; Open Price: 752.68; Close Price: 672.55; Profit: +10.646%.
Symbol: MSFT; Type: SELL; Open Price: 263.87; Close Price: 255.14; Profit: +3.308%.
The fall of all markets continues
The collapse in the telecom sector, where Ericsson fell after missing analysts’ quarterly profit projections, was a significant contributor to the larger-than-expected fall in the Stoxx Europe 600 index. An Asian share index had its third loss in the last four days as the sell-off in China’s real estate development sector moved to the banking industry. After temporarily falling below $1 on Wednesday, the euro continued its descent below $1, while the price of European bonds continued to fall. The yield on Italy’s 10-year government bond increased by more than 10 basis points as it became apparent that Mario Draghi’s ruling coalition was on the verge of falling apart. The price of a barrel of Brent crude oil dropped by more than 2 percent, reaching almost $97. This price is close to being at its lowest point in the last four months.
Bitcoin maintained its position below $20,000 despite the declaration for bankruptcy by cryptocurrency lender Celsius Network, which impacted sentiment. (Closed): According to Mark Cudmore and Anna Edwards of Citi, the US interest rate is projected to reach an all-time high of around 3.7 percent in the month of December. She went on to say that the numbers don’t point to a lesser increase than in June. As of 10:24 am London time, the Stoxx Europe 600 had down by 0.9 percent; futures on the S&P 500 had dropped by 1.3 percent; the Dow Jones had fallen by 1.2 percent; the Euro STOXX 50 had dropped by 0.5 percent, and the MSCI Emerging Markets Index had dropped by 0.2 percent.
The Consumer Price Index in the US is 9.1%
The Consumer Price Index had its highest monthly increase since 2005, coming in at 1.3 percent. The increase was mostly attributable to rising prices for fuel, housing, and food. The increase in the consumer price index was 9.1 percent over the previous year, making it the greatest gain was seen since the year 1981 came to a close. This was the fourth month in a row in which the headline yearly number was higher than the estimates. The annual change in consumer prices in the United States was 0.2 percent higher in June than it was in June of the previous year. This was the greatest increase in consumer prices since May.
The United States economy gained about 400,000 jobs during the previous month, and it is anticipated that the Federal Reserve will hike interest rates later this month. According to the projections of financial experts, there is a one-in-three possibility that the next increase in interest rates will be a full percentage point. The price of commodities increased by 2.1 percent from May, while the price increase for services was the highest it has been in more than 21 years, coming in at 0.9 percent. As fears around COVID continue to diminish, economists anticipate that consumers will shift their spending priorities away from products and toward services. The average hourly earnings were down 3.6 percent in June compared to the same month a year earlier, marking the 15th consecutive month of falling wages.
Parity of Euro and Dollar
For the first time in almost twenty years, the euro has reached the same value as the dollar. On Wednesday, the value of the common currency dropped as much as 0.4 percent, reaching a new all-time low of $0.9998. The final step down occurred when statistics revealed that inflation in the United States had increased by a greater amount than had been expected, which boosted betting on rate rises from the Federal Reserve. When compared to its near proximity to $1.15 per euro during trade in February, the euro’s decline has been lightning fast. In an economy with a total value of 12 trillion euros, this causes problems for consumers and contributes to an inflation rise that is already out of control.
Certain policymakers at the European Central Bank (ECB) have already given indications that the weakening is on their minds, particularly in regard to imported inflation. After experiencing years of low inflation, the European Central Bank (ECB) is now faced with a combined danger of inflation and recession. Since it was first introduced in 1999, the euro, which is currently used by 19 nations and about 340 million people, has been through numerous highs and lows. During its early years, the currency had a period of weakness that caused it to fall below 85 cents to the dollar, which led to pessimistic forecasts for its future. The initial decline in the value of the euro was followed by an extended period of growth; by 2008, the currency had reached a high of $1.60.
As the global financial crisis deepened in 2008, the value of the euro continued to decline. After that, a period of volatility set in as the sovereign debt crisis in Europe played havoc on the market. The euro started a slow but steady descent toward parity in the middle of the year 2021. Even while the ECB might raise interest rates more forcefully right now to prop up the euro, its agents may be constrained by the gloomier economic outlook.
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