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Daily Wrap UP: Markets are calm, awaiting inflation data

9 Dec 2021 05:24 PM

Most of the financial markets witnessed some calm today in the absence of important economic data, in addition to the traders' anticipation of inflation data in the United States for the month of November, which may determine the course of the monetary policy of the Federal Reserve during the coming period.

Gold prices have continued to move - in a narrow trading range between the levels of 1787 and 1773 dollars per ounce since the beginning of trading today, to settle currently above the 1773 levels, which is a support area that the price may remain above for a while, after its decline in the wake of the decrease in the numbers of Americans applying for unemployment benefits last week, which reached its lowest level in 52 years, which confirms the strength of the labor market, which significantly supported the dollar.

Markets are awaiting US inflation data tomorrow, Friday, where the consumer price index is expected to rise by 6.9% on an annual basis in November, after rising by 6.2% the previous month, the highest level in 31 years.

Considering the reassurance of the markets and the subsidence of concerns about the Omicron variant, the markets witnessed some stability, amid waiting for several central bank meetings during the coming period, led by the Federal Reserve, the Bank of England, and the European Central Bank, and what these banks will do - to confront the high inflation.

The US dollar achieved slight increases during today's trading, with the dollar index trading near its highest level in 16 months, in contrast, the euro fell to its lowest level in almost a week amid expectations of monetary policy adjustments during next week's meeting, and the pound sterling declined after touching its lowest level in 2021. Once again, in the wake of the British Prime Minister's imposition of new restrictions in England due to the Coronavirus.

It is expected that the Fed will announce at its meeting next week the acceleration of reducing the bond purchase program, which may provide more support for the US dollar, which will be confirmed through tomorrow's data.

As for oil prices, it witnessed some selling pressure because of the imposition of some new restrictions from some countries with the spread of the new variable, which may threaten global demand for oil, but prices are still on their way to achieving gains for the fourth consecutive day.

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