Tuesday Markets Await Key Inflation Data Amid Middle East Tensions

Good morning and welcome to Tuesday’s trading session. Today’s economic schedule is fairly quiet, with the main focus being on the UK’s employment data, expected to come in at 4.5%. Additionally, the U.S. will release its Producer Price Index (PPI) data, but for the highly anticipated Consumer Price Index (CPI) figures, we’ll have to wait until Wednesday. On the corporate side, Home Depot is set to release its earnings report ahead of the U.S. market open, which could influence early trading.

In the commodities market, we’re seeing a surge in precious metals and oil prices. These moves are largely driven by escalating tensions in the Middle East, specifically concerns over a potential retaliatory strike from Iran against Israel. While it’s uncertain when or if this will happen, the fear of conflict is pushing oil prices higher and boosting demand for safe-haven assets like gold.

On the currency front, the New Zealand Dollar and British Pound are showing strength, while the Japanese Yen and Swiss Franc are under pressure. The equity markets started the week quietly, with Monday’s session seeing little movement and low volatility. However, this lull is expected to be short-lived, with market volatility likely to pick up on Wednesday following the release of the U.S. inflation data. For now, traders are in a wait-and-see mode, preparing for the potential impact of this key economic report.

Source: https://www.axiory.com/analytics/market-news/tuesday-markets-await-key-inflation-data-amid-midd