The market's pulse: Main news regarding Trading market

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All eyes will be focused mid-week on the ECB and the fresh clues on its monetary policy. The USA will publish its construction indices and the Manufacturing PMI data. Germany, the eurozone and the U.K. will issue the latter index too. The U.K. will deliver its Retail Sales numbers.

Yesterday's main news

 - A bipartisan procedural vote on the infrastructure bill is scheduled for Wednesday and Biden supports it.
 US API crude inventories rose by 806,000 barrels last week, far exceeding expectations.
 - New crown-positive cases related to the Tokyo Olympics reached 67, not excluding the last-minute cancellation of the Games.
 - EU proposes banning anonymous cryptocurrency transactions.
 - The Biden team believes the chip supply will increase.
 - Japan's inflation has also exploded, with core CPI hitting a 15-month high.
 - The United States announced an extension of the "State of Public Health Emergency" for 90 days.

Oil prices recover slightly as overall financial markets recover from sharp drop
 Crude oil rose slightly on Tuesday, as the overall market recovered from Monday's sharp epidemic drop;  New York crude oil prices rose 1.5% on Tuesday, rising along with the US stock market.

 Oil prices fell the most since September last year on Monday, as countries around the world struggled to limit the spread of highly contagious delta variants.

 Capital Capital Infrastructure CEO Jay Hatfield said that oil prices will fluctuate in a range, because delta variations are "albeit true" "Demand is not catastrophic", but  it limits consumption, especially demand related to international travel.

 Crude oil price plunge on Monday sent Brent oil price falling below the 100-day moving average for the first time since last November and for the first time since May. Falling below the 50-day moving average.

 West Texas Intermediate crude futures futures rose $1 on Tuesday to close at $67.42 a barrel;  the more active September contract rose 85 cents to close at $67.20 a barrel;  Brent September contract rose 73 cents to close at $69.35 per barrel


US dollar hits three-month high on safe-haven buying

The US dollar rallied to a three-month high in safe-haven buying on Tuesday, and investors remained right.  The rapidly spreading variant virus is causing concern because it could stifle global economic growth.

Commodity currencies that are associated with risk appetite, such as the Australian dollar and New Zealand dollar, have experienced tough trends.  As worries about the highly contagious variant of the Delta virus flare up again, investors will choose to hedge or stay out.  Delta virus is currently the main novel coronavirus in the world.

The number of infections in the United States has risen sharply, especially in areas where vaccinations are lagging.  The US dollar rose and US Treasury yields fell.  The 10-year US Treasury yield fell to a five-month low below 1.20% on Monday, as markets once again cast doubt on the economy's strong recovery from the outbreak.

 “The shift in relative growth expectations is weakening capital outflows from the United States and increasing the attractiveness of investments,” said Karl Schamotta, chief market strategist at Cambridge Global Payments.  in dollars.."

 “I think the dollar’s ​​safe-haven strength is justified, because global economic growth is weak and not as strong as it was in the quarter,” said Juan Perez, forex strategist and trader at Tempus Inc.  first, so all valuations and economic growth are now called into question in terms of high expectations, that's true"


U.S. Treasury yields rebounded and the dollar strengthened, dampening gold's rally

Gold wiped out gains on Tuesday, heading for its second drop in three trading days, as a rebound in US Treasury yields curbed non-yielding assets demand for gold.  Yields on 10-year US Treasuries rebounded after falling early on Tuesday. The market thinks that as the global pandemic returns, the Fed will continue to support the economy through extreme interest rates.  short;  A stronger US dollar has also weakened the appeal of gold as an alternative.

 As investors tried to gauge bond yields, monetary policy and the global growth outlook, among other factors, gold prices faltered after four straight weeks of gains.  Gold, often seen as a safe-haven in times of market turmoil, has also been hit by a new wave of the new pneumonia pandemic that has affected the outlook for an economic recovery.

TD Securities and analysts led by Bart Melek say that despite the continued risk - Adverse sentiment, gold prices have yet to rise, suggesting speculative capital inflows remain very weak, increasing the possibility of further corrections  .

 Any factor that forces the central bank to expand its stimulus measures will be well received by the gold market.  Gold prices in June hit their worst month since 2016, as the Federal Reserve conducted a rate hike forecast on inflation concerns.

 However, WisdomTree Research Director Nitesh Shah said that while rising inflation data may underpin monetary policy trends, the growing number of infections could nevertheless put the central bank at risk.  Can't brake early.


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