During the Asia session, most stock markets fell, but growth and commodity-related currencies were on the rise. Different from the former, Japanese equities incurred a slightly positive move.
With the solid domestic figures issued in the aftermath of the RBA meeting, which ultimately revealed hawkish tendencies, the Australian Dollar surged. Loonie and NOK were not as well-performing as Kiwi.
As the Gazprom of Russia invoked force majeure on some of the European countries that import gas from the country, commodities have continued to struggle.
The rise of crude oil as of July 18 has essentially remained the same, while the Brent contract once again nears $106, and the WTI futures contract is changing hands over $102 on July 19.
The yield curve of Treasury yields has inverted by 18 bps around the 2 to 10-year line. Gold is clinging to the price of $1710/oz.
On another note, the issued TIC or the Treasury International Capital figures revealed that a hit below $1 trillion was taken from the China Treasuries holdings. According to some reports from China, there will be a grace period on loan repayments for mortgage holders, while construction companies can potentially be subjected to additional funding for their ongoing projects to be completed.
On the events to look forward to, following the figures released on UK jobs, the CPI figures for the Eurozone will also come in. The meeting taking place between the European Central Bank (ECB) and the Bank of Japan (BoJ) remains a focal point for this week.
The 10-day Simple Moving Average (SMA) has been surpassed by the EUR/USD pair, indicating a potential short-term bearish sentiment breakdown.
