Are you curious about the recent developments in the market? Wondering why the Eurozone inflation is dipping while the US Dollar is soaring? Or what impact the upcoming OPEC+ meeting will have on crude oil prices?
Discover the answers to these intriguing questions and more in this week's newsletter! We'll explore the factors driving the strength of the US Dollar and the weakness of the Euro, as well as the latest forecasts for Intel's sales and their potential in the AI market.
Eurozone inflation dips while the US Dollar soars
The main focus is on the Eurozone inflation dipping while the US Dollar strengthens. The weakness in the Euro is driving the US Dollar Index, with the Euro being the weakest-performing currency due to lower inflation data from Germany, Spain, and France. It is suggested that Europe's hiking cycle may end soon, and the Federal Reserve's speeches do not convince investors.
At the same time, the JOLTS Job Opening data indicates a resilient US economy while the EUR/USD is dropping.
Trading involves significant risk of loss.
Intel ($INTC) shares rise on upbeat sales forecast
Intel stock experienced a significant boost in the Dow as the chipmaker announced its current quarter revenue is expected to be at the higher end of its guidance. CFO David Zinsner stated that sales for Intel would reach $12 billion to $12.5 billion for the three months ending in July, surpassing their previous prediction of $11.5 billion to $12.5 billion.
Zinsner also highlighted Intel's potential in the AI market, emphasizing its ability to provide foundry services for customers involved in AI products.
After a decline to a nine-year low in February, Intel shares have rallied back and have seen a 20% increase this year.
Trading involves significant risk of loss.
Crude oil price jumps on optimism ahead of OPEC+ meeting
The crude oil price initially dropped to a three-week low but later recovered due to positive economic news and the US Dollar facing challenges.
The OPEC+ meeting in Vienna, starting this Sunday, will be closely watched by the oil market, as officials discuss production targets. The outcome of the meeting could potentially cause volatility in the market at the start of next week.
Trading involves significant risk of loss.
EUR/USD bulls flex muscles near 1.0780 hurdle amid mixed feelings of ECB
EUR/USD is holding onto slight gains around the 1.0760-65 level, lacking strong momentum following a previous surge. Weaker Eurozone inflation and mixed comments from ECB officials are influencing Euro buyers.
Recent data shows a slowdown in Eurozone inflation, with the CPI dropping to its lowest level in 15 months. This eases pressure on the ECB to raise interest rates after June, although President Christine Lagarde believes there is still work to be done as inflation remains high.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
