EUR/USD
On Wednesday, the day started calmly with low volumes and low volatility even around the opening of the European session. Everyone was looking forward to the June 2022 US inflation data which came out at 13:30 GMT. The macroeconomic calendar showed a sharp rise in inflation by as much as 9.1% compared to June last year, and the reaction did not wait. For the first time in 20 years, for a short time, the single European currency managed to become cheaper than the dollar. However, there the bulls found good prices to buy and we saw that the psychological level at border 1.00 was able to support the euro and it gained price and went up by 120 pips against the greenback. The downward pressure is huge and the probability is high that we will see a cheaper euro than the dollar for a longer period of time. Of course surprises today around the US manufacturing inflation data at 123:30 GMT are not out of the question and a higher correction should not be ruled out.
USD/JPY
The trend in the Ninja is undeniable and already in the early hours of the day on Wednesday we saw a buyout of the previous correction and an uptrend again. There was no shortage of speculation around the US CPI data, and after reaching a new monthly high of 137.84, we saw a sharp and deep correction, which, however, was again bought by the bulls in the stock market. The market was able to finish the day around the levels 137.34. Today, however, eyes are on the US Manufacturing Inflation data and the expected reaction remains to be seen at 123:30 GMT. The probability of the trend continuing is still high, but deep corrections like the one on Tuesday this week should not be ruled out.
GBP/USD
Sterling was not much different from the euro due to the dollar’s strength on Wednesday. The day started with low volatility without big swing movements. After the sharp jump in the dollar due to the CPI data from the US, we saw a corresponding drop in the pound, but it failed to reach or break its weekly bottom and the bulls found good prices and managed to push the day to 1.1965. This key level played the role of resistance and Sterling ended the day around 1.1890. Today we will be watching for trader reaction around the US manufacturing inflation data due at 123:30 GMT. A jump in the dollar again is not out of the question, but if we see a negative reaction, the pound could also bounce back in a stronger correction.
EUGERMANY40
In the early hours of the day, the German index moved calmly, but around the release of the German CPI data at 7:00 GMT we saw a negative reaction and a drop to 12740. There, the bulls briefly launched an attack, but after the strengthening of the dollar around the US CPI data at 13:30 GMT, the negative reaction did not wait and EUGERMANY40 crashed to 12617. However, volatility remained high, a second attack by the bulls, but it failed to hold and the day ended around 12757. Today we will see inflation on wholesale sales in Germany and we can expect a reaction, but mainly eyes will be on PPI data from the US at 15:30 GMT. The probability that the decline will continue is high, but of course a correction and high swings should not be ruled out.
US30
Trading in the blue chip index on Wednesday was quite thin as the European stock market opened. The huge swings, both up and down, came in the first minutes after the release of the 9.1% rise in US inflation. Traders’ panic seemed to continue and the US30 hit a new weekly low of 30500, a key level that the bulls used for another attack, but gave up on prices around 31000. The moves failed to hold and the day ended around 30730. The index is directly related to production and today’s US manufacturing inflation data at 13:30 GMT is expected to have a very large effect. Volatility has been high recently, wide-ranging ranges are occurring, and the future of the index depends on the reaction to today’s information.
