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Yaron Mazor
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The U.S Dollar became weaker and Wall Street surged on the news. Global investor sentiment appears to have embraced risk-taking. Producer Price Index data will come from the States today.

U.S Inflation Proves Strong, Global Markets React with Kick Start Higher

The broad global markets reacted counter-intuitively compared to many predictions yesterday. After the U.S Consumer Price Index produced an outcome which showed inflation was stronger than forecast, not only did Wall Street gain abundantly but the U.S Dollar – after all the data was digested – began to weaken. The Euro, Pound, and Yen all finished with strong advances in forex. What may, in fact, be taking place is the realization that the European Central Bank and its counterparts will have to react with the more aggressive policy of their own. It should also be considered that the recently proposed spending budget proposed by President Trump will certainly increase the U.S deficit. Put simply global investors kick-started their risk-taking engines once again yesterday.

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Strong Industrial Data from E.U and Japan, Jacob Zuma Resigns in South Africa

Industrial Production numbers were solid from the European Union yesterday. And Revised Industrial Production data from Japan came in stronger than expected this morning. Japanese equities have climbed in value and Europe has opened with gains. China has begun their Lunar New Year celebration. Trade Balance results will come from Europe this morning and later from the States more inflation numbers will be published. It should also be mentioned that South African leader Jacob Zuma has resigned which has helped the South African Rand in forex. After a firecracker like a day in the broad markets yesterday, global investors appear ready for another fast day of trading.

Gold Rockets Higher on Inflation Data, Another Firecracker Day Expected

Gold rocketed higher yesterday after the publication of the stronger than expected inflation news in the U.S and is near 1353.00 U.S Dollars an ounce. The precious metal is near important resistance which it tested daa few weeks ago and failed to break through and sustain. However, speculators may think this time will be different.

Producer Price Index from States, Philly Fed Manufacturing Statistics

The Producer Price Index from the States will be the focus of attention for traders and will be published at 13:30 GMT.

  • 10:00 AM GMT, E.U, Trade Balance
  • 13:30 PM GMT U.S, Producer Price Index
  • 13:30 PM GMT U.S, Philly Fed Manufacturing Index

Yaron Mazor is a senior analyst at SuperTraderTV.

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