China COVID-19 cases affecting Nasdaq (US100) and WTI: Price gap on Natural Gas, again [Video] – FXStreet

Brad Alexander Brad Alexander
FX Large Limited

I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at WTI (USOil), the Nikkei (JP225), Natural Gas, USDCAD, NASDAQ (US100), and the S&P 500(US500).
We have been following the easing of COVID restrictions in China and the positive effects this has had on the global economy.
It seems, however, that COVID cases are now increasing across China and this will affect almost everything including the US indices which rely on the Chinese economy to be strong.
Therefore, any more bad news about Chinese COVID restrictions will drive indices like the NASDAQ lower.
Also, we are seeing USD weakness against everything except CAD and this could change if we see an equity sell-off.
Price action on USDCAD is rising due to the fall in the price of Crude Oil as we see WTI at less than $72.
This will fall even further if China goes back into lockdown.
On the other hand, cold weather has affected price action on Natural Gas and the gap we saw last week has been filled.
A new gap has occurred with today’s opening with prices above $6.70.
As you can see we have a tremendous amount of news on the economic calendar and plenty of opportunities for counter-trend price action trading.
We have Interest Rate decisions Thursday from the US Federal Reserve, the Swiss National Bank, the Bank of England, and the European Central Bank.
The press conferences afterwards also provide us with opportunities.
That’s all for now.  Happy trading with Valutrades and we will see you next time.
CFDs and FX are leveraged products and your capital may be at risk.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
Annual CPI in the US is forecast to decline to 7.3% in November while Core CPI is expected to edge lower to 6.1% from 6.3%. Inflation figures are likely to influence the Fed's policy outlook and have a significant impact on the US Dollar's performance against its rivals.
EUR/USD is having a difficult time making a decisive move in either direction on Tuesday. The better-than-expected ZEW sentiment data for Germany and the Eurozone failed to trigger a noticeable market reaction with investors staying on the sidelines ahead of US CPI.
GBP/USD lost its traction and declined toward 1.2250 after having advanced beyond 1.2300 earlier in the day. The pair's action is likely to remain subdued with investors gearing up for the highly-anticipated November inflation figures from the US.
Gold price lost its traction and retreated below $1,790 during the European trading hours. The benchmark 10-year US Treasury bond yield holds steady at around 3.6% ahead of the Consumer Price Index (CPI) data from the US, not allowing XAU/USD to gather bullish momentum.
Samuel Bankman-Fried was arrested by the Attorney General and authorities of the Bahamas after a request by the US government. SBF is accused of securities violation, money laundering, wire and securities fraud.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.