Commodities ease amid stronger dollar

By Peter Bukov|

Published: July 12 2021, 09:45 GMT+0

Commodities ease amid stronger dollar

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It looks like the new week will start in the bullish mode for the greenback, while equities have been unmoved so far, trading near their Friday’s closing levels.

On Sunday, the European Central Bank President Christine Lagarde said that the central bank would update its guidance on monetary stimulus at its next meeting and indicated that fresh policy might be introduced in 2022 to support the European economy and replace the current “Pandemic Emergency Purchase Program.” The never-ending money printing continues, and they will never stop it. 

The EURUSD pair was trading flat today, last seen at around 1.1870. However, the USD was stronger against the Pound and commodity-linked currencies, pushing the USD index higher. 

In commodities, both silver and gold were weaker today, with gold hovering near 1,800 USD and silver trying to stay above 26 USD. Oil was also lower, changing hands at around 74 USD, but staying near its multi-year highs reached last week. 

Traders will pay attention to this week’s US inflation data, along with Jay Powell’s testimony. Both events will most likely cause volatility in the markets.