The bearish pressure continues, and indices failed to hold yesterday’s gains, dropping notably in the last hour of trading.
The negative sentiment was seen Tuesday as well. EU bourses were down circa half a percent, while US equity futures declined some 0.3%.
Oil remained above 80 USD as the energy crisis worsened and supply strains continued to dominate trading. The medium and short-term outlooks look bullish as long as it trades above previous highs of 77 USD.
The US dollar was seen broadly lower today, although volatility has been minimal so far. Nevertheless, the dollar index remains near one-year highs at around 94.30, supported mainly by the ongoing USDJPY strength.
Sterling traders paid attention to today’s UK jobs market data, which came out above expectations. The unemployment rate improved to 4.5%, while average earnings remained strong beyond 7%. The Bank of England looks ready to hike rates pretty soon, but the GBP/USD pair remains ignorant to that fact, and it struggles to remain above 1.36.
Later in the day, German ZEW surveys are due, expected to decline somewhat, possibly influencing the EURUSD pair and the DAX index.
During the US session, the JOLTS job openings for Auguste will be released, but this indicator rarely causes any market volatility.