Market Storm by Data

Market Storm by Data, A bright start for the dollar this week as well,

as jobs data contributed to inflation losing its grip on the table while confirming the Fed’s view of continuing the hawkish path while giving them an excellent opportunity to raise interest rates by another 75 basis points by next November during the monetary policy meeting.

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While the euro fell
As for the United Kingdom

While the euro fell

Market Storm by Data, during the past week, the sterling regained its strength again after receiving the good news

that contributed to its significant progress,

especially after the turmoil that the market was going through during the previous period

that almost pushed it to the bottom of a historical base,

while the yen recorded a significant decline against the dollar and

reached the bottom It has not been achieved since the 1990s and the main reason for this was the tightening of the

Fed policy with the rate hike which was met by the Bank of

Japan adopted support and intervention policies that did not work

and caused the yen to decline during the last week.

It seems comfortable for the US dollar, but it is the recent

OPEC decisions that cause significant inconvenience,

as the reduction in production quotas and the ban on

gasoline exports announced by Biden may create a crisis that coincides

with and supports inflation and leads to an increase in fuel prices in general,

which has the consequence It has to rise in the prices of many commodities,

which makes raising interest rates again and the continuation of the strict policies inescapable.

Traders have also priced the Federal Reserve raising interest rates next year,

and it should be noted that geopolitical events may keep inflation rates high.

There is no doubt that Federal will continue his career without retreat.

These policies contributed to reducing the appetite of the American consumer,

as September recorded the largest price increases in the consumer market in

line with the decisions of the Federal Reserve,

which aspires to slow the economy temporarily to fight inflation,

and overall sales stabilized while the basic figure advanced by only 1%.

Since the retail sales data was not adjusted according to inflation rates,

the report indicates a decline in real spending during the month,

despite recording sharp growth, but retail sales rose by 8.2% at the annual level,

which may correspond to the rise in the consumer index during the coming period.

The core index, which excludes foodstuffs and energy,

increased by about 7.2% over the year and 0.3% in September.

The producer price index also increased by .04% compared to August,

where it rose by 8.5 on an annual basis, despite the rise in energy, services, and food costs.

The index also flourished. Producers in the services sector are strongly promising to show signs of growth.

As for the United Kingdom

Market Storm by Data – The new prime minister, Liz Truss,

demanded the dismissal of the chancellor last week,

indifferent to the economic situation as the spectre of peak inflation

has become one of the most vexing concerns of Bank of England Governor Andrew Bailey,

and Quarting made a statement in late September about tax cuts

that quickly turned into an economic and political catastrophe.

The mini-budget included a plan to cancel the proposed tax increase

from 19% to 25% – with a value of up to eighteen billion pounds.

But for everyone to taste honey, you must take your luck from a bee sting.

These decisions have hurt some trends. Government bond prices have fallen,

which forced the Bank of England to intervene for two weeks after it

was informed that several investment funds loaded with commitments as part of a program

Pensions were hours away from collapsing,

as Terrace managed to calm the markets with a press conference,

explaining that the mini-budget it set went quickly, contrary to expectations.

At the press conference, the UK economy disappointed expectations of contraction in August,

after the cost-of-living crisis led to a sharp decline in industrial production and consumer prices,

indicating that the economy may already be in the doldrums and maintenance of the North Sea gas fields had to have a major impact. On the decline, as the domestic production decreased by about 0.3% during August,

it seems that the order to raise the interest rate by 75 basis points again has become long-term.

All events do not bode well for the future, Recover from inflation in the near term.

Eurozone Recession

Eurozone Recession+

Eurozone Recession, as you all know, the Euro has been on a tear lately, with its value increasing at an unprecedented rate.

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Recession Slowing down
Eurozone Struggle
Eurozone Future

Recession Slowing down

However, according to recent data from Eurostat, that rate of increase has slowed slightly, from 10% to 9.9%, despite this small decrease, the overall trend is still very positive and investors should remain confident in the future of the Euro.
So, whatever your investment strategy is, make sure to keep a close eye on this currency!

Estonia and Latvia have been two of the fastest-growing economies in Europe over the past few years.
However, new data shows that inflation in both countries is slightly lower than previously thought, this is good news for traders and investors who have been worried about potential price bubbles in these countries.
It now seems less likely that prices will continue to rise at an unsustainable pace, making it a safer place to invest your money.

The eurozone gauge on the month was unrevised, as was the so-called core measurement excluding volatile elements such as food.
This means that inflation in the bloc is still relatively low and poses no immediate threat to the European Central Bank’s (ECB) efforts to stimulate growth.
However, with wages beginning to rise and energy prices edging higher,
inflation may start to pick up in the coming months.
This will be closely watched by ECB policymakers, who have been adamant that they will not begin tightening monetary policy until inflation has reached its target of close to 2%.

Eurozone Struggle

The European Central Bank’s (ECB) decision to raise interest rates next week by up to 75 basis points
is unlikely to provide much relief for consumers struggling with the region’s energy crisis,
despite a slight downward revision in inflation forecasts,
the ECB still expects prices to rise at a double-digit pace this year.
This means that consumers will continue to see their costs surge as they try to cope with the energy crisis.

The situation is particularly dire in countries like Italy and Greece,
where inflation is already running well above 10%.
In these countries, households are being squeezed hard by rising costs and stagnant wages,
with no end in sight for the energy crisis,
it seems likely that consumer price growth will remain high across Europe in the months ahead.
This means that interest rate rises from the ECB are unlikely to provide much relief for ordinary families.

There is a huge divergence in inflation across the eurozone,
with rates ranging from 6.2% in France to 24.1% in Estonia.
This new report underscores the enormous disparities that exist within the currency bloc and highlights the need for policymakers to address this issue urgently,
Inflation has been rising steadily throughout the eurozone over the past year,
but there have been wide variations between countries.
While some member states, such as Germany, have seen relatively low levels of price increases,
others like Greece and Spain have experienced much higher rates of inflation.

Eurozone Future

The new report from Eurostat confirms that these differences are still very pronounced and underscore just how divergent economic conditions are across the eurozone at present. With consumer prices rising much faster in some parts of the currency bloc than others, it is clear that not all households are experiencing equally favourable economic conditions at present.

This divergence in inflationary pressures is likely to continue unless action is taken by policymakers to address it directly. The European Central Bank will need to monitor developments closely and take whatever steps necessary to ensure that inflation remains contained within its target range.”

Inflation has been rising steadily since early 2016 as the bloc emerges from years of economic stagnation. The ECB has been slow to react but is now widely expected to raise interest rates next year as price pressures continue to mount, this will be good news for savers who have seen their incomes squeezed by low-interest rates for years. But it will add pressure on borrowers who are already struggling with high levels of debt relative to their incomes.”

Eurozone consumer inflation was marginally lower in September than estimated earlier, data showed on Wednesday, but still, at a record high, the European Union’s statistics office Eurostat said consumer prices in the 19 countries sharing the euro rose 1.2% month-on-month for a 9.9% year-on-year surge, revising down its earlier estimate of a 10% year-on=year reading, surging energy prices were responsible for 4.19 percentage points of the total year=on=year reading, with food adding another 2.47 points and services 1.80 points.

Oil reduces its looses Pound and Euro continue

Oil reduces its looses Pound and Euro continue to perform positively

Oil reduces its looses Pound and Euro continue :

Evest continues to observe the world market movements, Thursday,
as a number of important events dominate the trading scene, amid weak trading in some markets because of the Christmas holidays.

The European Union and the United Kingdom are close to reaching an agreement,
and sentiment is now high towards the approval of the US stimulus package despite Trump’s threats,
which supported gold stock markets, and put more pressures on US dollar.

Oil rises, but is on its way to its first weekly loss since October

Global oil prices rose, Thursday, on the back of reducing the fears of slowing demand,
after data is released on declining stocks of raw materials in the United States.

March Brent North Sea futures rose 0.84% to $ 51.67 a barrel,
and February West Texas Intermediate crude futures rose 0.79% to $ 48.5 a barrel.

The decline in oil inventories in the United States increased investors’ hopes for a recovery in demand.

Official data showed that on Wednesday, oil inventories decreased by 0.6 million barrels,
in addition to a decrease in gasoline inventories in the country during the week by 1.1 million barrels,
to 237.8 million barrels, against expectations of an increase in stocks by 1.22 million barrels. At the same time,
distillate stocks fell by 2.3 million barrels to 148.9 million barrels.

This created a bit of optimism in the markets, as it played a role in raising the prices of oil to 2.3% on Wednesday.

As the dollar weakened, the price of commodities in dollar became more attractive.

Despite this, oil prices are preparing for their first weekly loss after the optimism of the vaccine developments.

It is going towards its first weekly loss since vaccines were developed in October.

With the new strain in Corona virus and the increase in the number of the world cases,
stricter quarantine measures have been implemented in more areas in the United Kingdom.

The weak dollar supports gold

Gold prices rose, Thursday, taking advantage of the decline in the US dollar,
as investors are betting on more monetary stimulus despite Trump’s threat to disagree to the package,
as it seems that the country is in need for it as early as possible,
for being the country is most affected by the virus on the planet of earth.

Gold rose 0.3%, recording $ 1876 an ounce, after rising for about 1% during Wednesday’s session.

Gold is currently supported by news related to the new Corona virus strain discovered in the UK,
in addition to the recent weakness in the dollar after the final approval of the United States stimulus package is approaching.

Gold is inversely correlated with the US currency,
so the green paper currency will determine the path of the precious metal through the coming days and weeks.

Investors are waiting for Joe Biden to assume the presidency to find out about his policy towards the dollar,
which Trump is trying to weaken so as to increase exports.

According to Reuters, gold is trying to measure the level of $ 1888 an ounce, and if this happens, gold can reach$,1904 an ounce.

Asian stocks are in the green area…and expectations of continued rise European markets

Evest is following up how indices have performed in the world stock market sessions.

As Asian stocks remained positive for the second day in a row,
as optimism about the exit of Britain from the European Union and the US Corona virus aid package led to raising the mood amid year-end holidays in some markets.

The MSCI Asia Pacific Index outside Japan rose by 0.40%,
the Nikkei rose almost the same range to 26.668.35, and the Hong Kong Hang Seng Index rose 0.2%,
reaching 26.386.56. South Korea’s Kospi Index rose 1.4%, to 2.799.30 points. The Australian S & P/Ask 200 rose 0.3%, to record 6.664.80 points.

The Shanghaies Composite lost 0.%, to trade at 3359.12 points.

Expectations indicate that the European stock indices are trading higher today,
as the agreement between the United Kingdom and the European Union is very close to be achieved,
and it may be announced today according to international media.

The French CAC index may increase to 14 points, while the British FTSE index may increase to 38 points,
while the German Stock Exchange and other European Stock Exchanges will be shutdown because of the Christmas holidays.

European stock markets closed higher on Wednesday,
with the growing hope for a trade deal between Brussels and London,
as British media reported near the end of the trading day that there is a deal in the horizon.

In the US market, two of the three major Us indices ended the session with the green color on the back of positive labor market statistics.

The Standard & poor’s Index rose 0.1%, to 3690.01. It reached its highest level today.

All in all, the index rose to 14.2% so far this year.

The Dow Jones Industrial rose to 0.38%, to record 30.129.83 points.

The Nasdaq Composite Index declined to 0.29% to reach 12771.11.

The number of initial unemployment claims in the US reached 803.000,
and reached its lowest level through the last three weeks, which became as s surprise to the market,
as some analysts expected that unemployment claims to reach to 885.000.

The dollar weakens against a group of currencies…and a new rise in the sterling and the euro

News that Britain and the European Union became close to make a trade deal gave a push to the euro and the British pound to a higher level, which made the dollar declines.

The British pound continued to rise today, after increasing expectations for a trade deal between the UK and the European Union, while the dollar fell due to weak trading in the holiday season, and the increasing hopes of approving the stimulus package worth $ 9000 billion led to a decline in demand for the US currency.

The sterling rose 0.4%, to trade at $1.3546, after rising by 0.9% yesterday.

Where it finally managed to profit after 3 consecutive days of losses.

The euro rose 0.1%, to trade at 1.2203 against the US dollar, after rising by 0.2%, on Wednesday.

The US dollar index is trading at 90.2 after falling by 0.3%, yesterday. While the Japanese yen was unchanged, as it is trading at 103.56 per one dollar.

The Australian dollar rose at 0.8%, against its US counterpart yesterday, now is trading at $ 75.797. The United States currency fell at 0.1% to reach 6.5204 Chinese Yuan.

According to Reuters, the dollar index, which measures the performance of the US currency against a group of 6 major currencies , has lost more than 6% this year, as investors bet that the US Federal Reserve will maintain its monetary policy more easily and the fiscal stimulus will accelerate the economic recovery in 2021.