The absence of Chinese inflation and an annualized PPI running at -5.4% sends deflationary fears through the market, leading to a stock market sell-off during today's Asian session.
➡️ Stock markets are lower on flat Chinese inflation data and a rapidly falling PPI showing an annualized rate of -5.4%, leading to fears of deflationary pressure. Most global stock markets are trading lower, especially in Asia, where the Hang Seng Index and the Nikkei 225 Index are both lower from their respective daily opens.
➡️ Bitcoin closed below what appears to be a very crucial round number at $31k again on Friday, with price action now looking more uncertain, suggesting that a bullish breakout may not occur.
➡️ The Japanese Yen remains the weakest major currency over the long term and during today's Asian session. A few days ago the USD/JPY currency pair made a new 7-month high above 145 yen, but is now trading well below that level. Trend traders will remain interested in remaining short the Japanese Yen, while the US Dollar has been the strongest major currency so far today. The Australian dollar is also weak today following the impact of poorer-than-expected Chinese economic data.
➡️ Bank of England Governor Bailey has rejected calls to raise the inflation target above 2%, despite the UK's relatively high and persistent inflation rate.
➡️ Markets expect a 25 bps rate hike from the Bank of Canada later this week.
Credit by DailyForex.com