Today the focus is on UK food shortages, falling forecasts, and Sticky shipping issues.
The US Core Retail Sales for September will be released. Forecast: 0.5%. If the data is lower than expected the USD could receive a negative push.
Assets to trade: USD/JPY, AUD/USD, NZD/USD
Oil prices rose by about 1% on Thursday after the International Energy Agency said that record natural gas prices would boost demand for oil and top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply. Affects Brent
Britain’s 20-year binge on cheap food is coming to an end and food price inflation could hit double digits due to a tidal wave of soaring costs that are crashing through the supply chain, Britain’s biggest chicken producer said. Affects GBP
President Joe Biden is pushing to ease supply shortages and tame rising prices in time for Christmas, but unsnarling US supply lines could take far longer. Affects USD
Germany’s top economic institutes cut their joint forecast for 2021 growth in Europe’s largest economy to 2.4% on Thursday as supply bottlenecks hamper manufacturing, but they raised their prediction for next year. Affects EUR
A bipartisan group of lawmakers, headed by Senators Amy Klobuchar, a Democrat, and Republican Chuck Grassley, plan to introduce a bill that would bar Big Tech platforms, like Amazon and Alphabet’s Google, from favoring their products and services. Affects Google
Supply shortages are impacting the US and other major countries driving up prices and dropping currencies. The Dollar has fallen against many traditionally weaker currencies.
The pair has shown a Bearish Engulfing pattern signalling a downtrend into the support zone.
The index has shown a small Bullish Engulfing pattern into a possible Three Outside Up, rising into resistance.
The downtrend continues after a Bearish Engulfing pattern.