Markets Trade Sideways Ahead of Wednesday’s US CPI

On Tuesday, the USD slid, pushing the EURUSD pair above 1.02 again, with USDJPY falling below 135. At the same time, the yield curve continues to be massively inverted, implying a deep recession.

Taiwan’s foreign minister said earlier on Tuesday that China was using its military exercises against Nancy Pelosi’s visit to the United States as justification for preparing for an invasion of the island. The relationship between the world’s two economic superpowers would be significantly impacted by such a step.

Market participants hold their breath as they wait for the publication of the US Consumer Price Index on Wednesday. The predicted inflation rate for July is 8.7%, a little decrease from the 9.1% recorded in June. Although it would still be the greatest level in forty years, such a decline may be a sign that inflation could be peaking.

Oil returns above 90 USD

As investors assessed the restart of negotiations to resurrect the 2015 Iran nuclear agreement, which may lead to the Persian nation’s crude exports returning to the international market, oil prices increased on Tuesday.

A senior EU source stated that a final decision was anticipated within “very, very few weeks” as European Union diplomats delivered the final draft agreement to the US and Iran late Monday.

A deal like that may enable Iran to increase its oil exports by around a million barrels per day, but in the past, agreements have been hard to come by.