Tuesday Watch: Earnings Roll In, Inflation Awaits, Bitcoin Slips

Hello traders, and welcome to Tuesday — finally a busy day on the calendar. Both the macro and earnings fronts are heating up, and the market is starting to respond.

Let’s start with earnings. Today brings a full slate from the banking sector, with major players reporting before the U.S. market opens. On deck:
JPMorgan, Wells Fargo, BlackRock, Citigroup, and Bank of New York Mellon. These results will give us an early pulse on the financial sector and its read on the economy heading into Q3.

On the macro side, we’ve already had a few key data releases.
China posted strong GDP and industrial production numbers, both above expectations. Retail sales came in slightly below, but overall the data paints a solid picture from the world’s second-largest economy.

That’s just the start. The real market drivers today will be inflation numbers:

• From the U.S., annual CPI is expected at 2.6%

• From Canada, monthly inflation is expected at 0.1%

These readings will likely set the tone for interest rate expectations and FX flows through the rest of the week.

Futures this morning are mixed. We saw a pop in the middle of the Asian session, but that move has mostly been faded. Still, markets remain close to long-term or all-time highs, so the underlying sentiment stays bullish, barring any major shocks.

In FX, early price action shows strength in the euro and New Zealand dollar, while the U.S. dollar and Australian dollar are under mild pressure. That said, currency movements are subtle so far.

Commodities are more active.

• Oil continues to slide, extending a multi-day decline.

• Gold and platinum are building on earlier gains this week.

• Silver, on the other hand, is giving back part of its recent rally — especially the explosive move from the second half of last week.

Finally, a quick note on Bitcoin, which had a stellar weekend rally, but is now undergoing a sharp correction. Price has already dropped from $123,000 to $117,000, and the sell-off appears to be accelerating.

With earnings, inflation, and technical levels all in play, Tuesday could be a market mover — especially once U.S. data hits.

Source: https://www.axiory.com/analytics/market-news/tuesday-watch-earnings-roll-in-inflation-awaits-bi