Inflation in the U.S. has risen even further, reaching its highest level since 1981 at 9.1%. The risk of a recession is also increasing.
The EUR/USD is headed down after the inflation report and so is Wall Street.
European and Italian stocks are falling due to the unstable political situation in the Italian government.
U.S. oil inventories are up short.
The unemployment rate in Australia fell from 3.9% to 3.5%, reaching its lowest level since 1974.
AU MI 12-month inflation expectations fell from 6.7% to 6.3% in June
The Bank of Canada (BoC) raised its interest rate by 100bp, beating traders and analysts’ expectations.
USD/JPY traded above 138.00 for the first time since September 1998.
The USD/CAD broke through to 1.3060, which has been a resistance level since May and rose to 1.3233, but then pulled back to 1.3100. And forex traders are predicting a 100bp rate hike later this month, after inflation rose to a record 9.1%. And that does not promise anything good for the CAD.
The EUR/USD fell to 0.9951 but closed at 1.0020. The Euro is losing its positions because of the turmoil in Europe. In addition, Italian Prime Minister Mario Draghi announced his resignation.
GBP/USD fell to 1.1759, which is the lowest level since March 2020 and is now trading around 1.1820.
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