U.S. dollar eased because of reducing bond yield on Tuesday but it may a short-term effect. Investor eyes on U.S. inflation data as it may rise bond yield and Fed may raise interest rate earlier, if inflation rises more than forecast. Focus U.S. core CPI and CPI in January at 20.30 p.m. which market predicts core CPI at 0.2% and CPI at 0.3%. If these indices lower than expectation, Wall Street may rise strongly and greenback may fall lower. But if the indices are higher than forecast, it may swing markets: investor may worry about rising interest rate earlier as Fed signaled and shares may swing down. Moreover, U.S. core retail sales and retail sales in January at 20.30 p.m. may give good support for Wall Street, if there will be higher than expected.
Major Asian stock market may wait to see Japanese fourth quarter GDP at 6.50 a.m. which may give positive for shares including SET, if GDP will be higher than forecast. Investor also keeps focusing on inflation and economic in EU: German CPI and GDP at 14.00 p.m. and EU GDP at 17.00 p.m. which may express the strong economic of European Union. Investor thinks ECB may plan to end QE even no signal about it. I think that today maybe another day of high volatility in markets: shares, commodities and currencies.
Greenback may affect to oil price but the direct effecting is U.S. crude oil inventories which may increase to 2.6 million barrels. If oil inventories rise and U.S. dollar steady, oil price may fall hardy. In my opinion, U.S. crude oil inventories may rise because oil rig count was increased but oil price may try to hold above 60$/barrel. While gold may swing against greenback. If dollar edge higher, gold price maybe lower.
UAE Exchange which operates nearly 800 branch locations in 31 countries will use Ripple's technology product for cross-border transactions, with the aim of reducing the cost and frictions associated with such transactions. In recent days, Ripple has announced partnerships with firms like LianLian, Santander UK, IDT Corporation, Mercury FX and MoneyGram.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.