Market Snapshot – US Data Comes in As Per Expectations
Inflation Data as per Expectations
It has been a busy day in the markets today as we have witnessed a lot of volatility to continue from where it left off yesterday. Compared to the boredom that we saw in the markets last week, we are seeing much more volatility and vibrancy in the markets this week as the euro and the dollar compete with each other in gaining strength. The focus was on the dollar for today as we had the inflation data in the form of CPI and the retail sales data from the US. The CPI data came in as per expectations while the core retail sales missed their mark while the retail sales data exceeded expectations. This continued the trend of mixed and choppy data from the US that we have been seeing over the last couple of months but we believe that this should be enough for the Fed to pursue a rate hike in December and we should see the dollar beginning to gain in strength.
Oil Prices Under Pressure
The oil prices have been skyrocketing over the last couple of weeks ever since the crisis in Saudi Arabia began and which placed a lot of pressure on the supply and production of oil. Now that the crisis seems to be settling down, the focus has shifted back to the fundamentals and the building inventory of oil has been a matter of concern as far as the oil bulls are concerned. We are seeing a steady build in the inventory and as long as this happens, the prices cannot go too far. We may see a correction in the prices in the short term as the fundamentals come back into focus.
This article was originally posted on FX Empire
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