Global Stocks Retreat after Trump’s Threat on Russia

The U.S Dollar has been weaker and European equities have seen a selloff as the Euro and Pound have strengthened. CPI will come from the U.S today, and later the Fed’s FOMC Meeting Minutes will be published.

European Market Retreat as Forex Shakes Markets, U.S Reports Awaited

European markets have lost value this morning as the Euro and Pound have gained against the U.S Dollar in forex. Inflation numbers from China published this morning came in below forecasts, highlighting global inflation remains lackluster in many respects. However, yesterday’s Producer Price Index from the States was strong, and today’s Consumer Price Index will prove crucial to traders. Yesterday’s buying spree on Wall Street has helped global investor sentiment. U.S and Chinese leadership are both conveying a desire to negotiate and avoid a trade confrontation. However, the sentiment turns today as tension between US-Russia grows over the Syrian conflict.

Italian Retail Sales have come in better than expected also this morning, but investors are primed for the inflation results from the U.S and are also awaiting the Federal Reserve’s monthly Meeting Minutes publication.

Fed Report will be Read Carefully, Euro & Pound Gaining Versus U.S Dollar

The U.S Dollar has remained weak in forex this morning as investors seemingly trade on the belief other central banks, excluding the U.S Federal Reserve, will begin to react to the Fed’s hawkish policy and counter with moves of their own. The Euro and Pound are testing important short-term resistance, but traders are also bracing themselves for the CPI results from the States coming soon and will read through the Fed report later this evening attentively.

Precious Metal Responds with Solid Climb, Traders Eyeing Resistance Ahead

Gold has broken through short-term resistance and is near 1350.00 U.S Dollars an ounce. The emergence of risk appetite has created a frenzy in commodities and the precious metal has responded with a solid climb. Speculators should eye resistance up ahead at 1350.00 U.S Dollars cautiously.

Inflation Data Key Ingredient Today from U.S, Fed Minutes Report Coming

The Consumer Price Index data will be a key ingredient for traders upon its release at 12:30 GMT.

• 12:30 PM GMT, U.S, Consumer Price Index
• 14:30 PM GMT, U.S, Crude Oil Inventories
• 18:00 PM GMT, U.S, FOMC Meeting Minutes

Yaron Mazor is a senior analyst at SuperTraderTV.

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