Wednesday's Market Overview: Indices and Commodities Show Strength
19 July 2023
Welcome to the Morning Market Commentary for Wednesday. Let's start by reviewing the major events from Tuesday's economic calendar.
Inflation numbers in Canada surprised to the upside, coming in higher than expected. The Canadian dollar took this as a positive signal, marking it as one of the strongest currencies for the day. Meanwhile, the U.S. saw a dip in retail sales, but this didn't deter the American dollar, which continued its upward trajectory.
Turning our attention to Wednesday's figures, inflation data from New Zealand came in above expectations. Meanwhile, the UK's inflation rate dipped to 7.9%, falling short of the 8.2% forecast. As a result, the British pound is currently on a downward trend and has emerged as the day's weakest currency.
Looking forward, we are anticipating housing start figures from the U.S. Though not a major data point, it's still worth keeping an eye on.
In terms of market movements, Forex trends have already been discussed, but it's worth noting the positive momentum seen in indices. In particular, the Dow Jones surged past the critical 34,600 points resistance mark, signaling a robust long-term buy scenario. Commodities too are showing strong bullish trends. Gold and silver both reached new mid-term highs, while oil rebounded from key support levels, keeping the overall positive sentiment in commodities intact.