Volatility has been lower so far on Monday, but US equity futures advanced higher (new record highs for the Nasdaq 100 index) as investors are getting ready for a busy week.

During the Asian session, the Chinese central bank left monetary policy unchanged, as widely expected, and the primary interest rate was kept at 3.85%.

However, Liu Shijin, an advisor to the People’s Bank of China (PBOC), warned that the Chinese economy could enter a ‘quasi-stagflation’ period.

“Such a scenario is “very likely” if demand remains weak, producer prices stay high, corporate profits are squeezed, and existing risks in the economy are “released too quickly.”

Shorting the euro remains a preferred strategy in the FX market as the euro is the weakest major currency compared to the USD amid the continuous ECB dovishness. The EURUSD pair has settled below 1.13, and many analysts are calling for much lower prices in 2022 as the Fed starts to raise rates, while the ECB will likely do nothing, despite soaring inflation in the EU.

Elsewhere, silver quickly erased Friday’s drop and was seen 1% higher today, trading at around 24.85 USD. On the other hand, gold traded slightly weaker, remaining below 1,850 USD so far.

Later in the evening, the New Zealand retail sales data for the third quarter will be released, possibly causing elevated volatility in the NZD.

Source: https://www.axiory.com/analytics/market-news/us-stocks-advance-higher-dollar-slips-monday


About Author

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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