Inflation, Inflation, Inflation

FOREX.com

FOREX.com Representative
Messages
33
With inflation contributing to high volatility in the market, banks are forced to raise interest rates are keeping stocks under pressure. CPI data in the Eurozone shows a record high in consumer prices in the US and UK since they have been in the last few decades. There has also been an issue with supply in every day items such as bread and energy due in part to the Ukraine-Russian war. The combination of weak growth and surging inflation around the world has raised concerns over a potential stagflation.

Commodities such as iron ore, copper, and crude oil have fallen due to demand concerns over a sharp economic slowdown. Emerging markets have been damaged severely as inflation as also affected consumers' incomes. Furthermore, crude oil may break trend downward, creating more opportunities for sellers to take advantage and for buyers to buy the dip. As inflation has affected many components affecting the world substantially, recession fears are well in play as well. It is a great idea to keep an eye on these for the next couple of days to see how inflation progresses in a direction we haven't experienced in decades. Please keep in my all trading carries risk.
 
Back
Top