July Issue

Top Market Events

The headline inflation YoY for June printed at a massive 9.1%, higher than the consensus forecast of 8.8%. Moreover, the annualised core number, which strips out volatile items such as energy and food, was also higher than expectations at 5.9% (5.7%). This upside surprise will confound the Fed, cementing at least a 75bps hike for July.

A worrying sign is the deepening of the 2-10s yield curve inversion. The bond market is screaming concern about economic activity, and in all the commotion, the dollar remains supported.

Keep an eye on the EURUSD. It briefly hit 0.9997 before finding support and moving higher. However, given the current macroeconomic environment, a break below parity threatens.

Dollar-denominated commodities and stock market values will likely remain under pressure as yields push higher.

As Q2 earnings season commences, company forward guidance will play an essential role in either adding to the momentum or stemming the tide.

Client Service Stats

We know you expect a stellar service. Take a look at the client service response times across the FXCM Group in the month of June.

Source: FXCM Service data, review period: June 2022.

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