Weekly reviews

The market did not believe North Korea and the missile launch was ignored

So, the this launch of the missile did not have a big impact on the markets. The fact that the United States did not react immediately and no statement was made apparently played a significant role. South Korea said that it conducted its own training, which included launching the missile into the Sea of ​​Japan.

The reaction of the FOREX currency market is of some interest. The Japanese yen as one of the main safe assets initially strengthened. The dollar fell to about JPY109.50 after a brief slip through JPY111.00. However, a big reaction never happened on the market. After a little consolidation, longs resumed and the pair USD / JPY gained to JPY110.80 and then to the local monthly highs around $ 111.31

The reaction of gold to this event did present, of course, but it was not long. As a result, gold rose to $ 1334.40 per ounce, but then retreated and continued to decline to the support area of ​​$ 1322.90.

Today, on the last trading day of the week, the market will analyze a large amount of data on the US economy. The most important indicators are retail trade and industrial production in August. It is expected that the volume of industrial production will increase by 0.1%. The US also reported a consumer sentiment according to the University of Michigan and inflation expectations.

Yesterday, the focus of the markets was on the US inflation data. Based on these reports, investors wanted to assess the likelihood of another rate hike this year.

In August, consumer prices increased by 0.4% (forecast 0.3%), which was the most significant growth since January this year.

The consumer price index also proved to be better than the forecasted 1.8%  in annual terms and amounted to 1.9%. The base value of the index in monthly terms coincided with the forecasts and came out at 0.2%, and on an annual basis the basic CPI exceeded expectations 1.6% and amounted to 1.7%.

Interesting story keeps on developing on FOREX market as after rapid gaining that followed immediately after the release of inflation and jobless claims data and, USD dollar began to rapidly lose its own positions, and, as a result, completed the day with losses.

The growth of the oil market yesterday led price to the level of $ 56, but then the market retreated and today Brent is trading just below $ 55.50. Improved prospects for demand after the release of reports from the IEA and OPEC provide support for oil. A positive view on the oil market remains, although today one can expect consolidation before the weekend.