Earlier in the day, Chinese CPI rose to 2.7% year-on-year, up from 2.5% previously, but the PPI indicator is still profound in the negative territory. Commodities and commodity-linked currencies were trading marginally higher in the Frankfurt session as the Asian session did not bring increased volatility.
Equities were up again, which is nothing surprising, and they continue to rise nearly every day, despite signs of deteriorating economic conditions across the world and virus resurgence in many countries/areas.
Investors were nervous after US President Donald Trump signed two executive orders banning WeChat, owned by Chinese tech giant Tencent, and TikTok in 45 days while announcing sanctions on 11 Chinese and Hong Kong officials.
The WTI oil is still consolidating between 40 USD and 42 USD and if we see a break from this range, volatility might pick up and a new short-term trend should start.